Interactive Brokers LLC is a brokerage firm that provides trading and investment services globally. Despite its reputation for advanced technology, the company has faced legal and regulatory challenges. The SEC has fined Interactive Brokers LLC for violations of anti-money laundering regulations and supervisory standards.
Numerous Interactive Brokers LLC complaints and lawsuits have alleged misconduct, inadequate risk disclosures, and mishandling of accounts. Investors who believe they have been harmed may consider seeking assistance from a lawyer to explore brokerage firm investment loss claims.
Taking legal action can help recover losses from potential wrongdoing or negligence on the part of the firm.
The History of Interactive Brokers LLC
Thomas Peterffy founded Interactive Brokers LLC in 1978 as a market-making firm. A pioneer in electronic trading, Peterffy was among the first to implement computerized trading systems, revolutionizing the way financial markets function.
Based in Greenwich, Connecticut, the firm has grown into a global brokerage platform, providing access to stocks, futures, forex, options, and other financial products across a wide range of international markets.
Known for its low-cost structure and advanced trading technology, the firm became a platform for individual investors, professional traders, and institutions alike.
Interactive Brokers LLC Investment Misconduct
Interactive Brokers LLC faced enforcement actions for various violations, including anti-money laundering (AML) laws, sanctions compliance, recordkeeping obligations, and supervisory requirements.
Over the years, the brokerage firm has paid substantial penalties to regulatory bodies, including the Financial Industry Regulatory Authority (FINRA), the Commodity Futures Trading Commission (CFTC), and the Office of Foreign Assets Control (OFAC).
FINRA Enforcement Actions
FINRA has penalized Interactive Brokers LLC for critical failures in AML compliance and trade supervision.
In 2020, FINRA imposed a $15 million fine for widespread AML deficiencies. Interactive Brokers LLC failed to detect and report suspicious activities across thousands of accounts, including manipulative trading schemes and potential securities fraud.
Additionally, the firm failed to dedicate sufficient staffing and resources to its AML program. This penalty was part of a broader investigation involving the SEC and CFTC.
Earlier, in 2018, FINRA fined Interactive Brokers LLC $5.5 million for supervisory failures related to customer trading activities. Specifically, the firm’s oversight systems failed to detect manipulative short-selling practices and ensure compliance with short-selling regulations.
CFTC Enforcement Actions
The CFTC sanctioned Interactive Brokers LLC for AML violations, recordkeeping deficiencies, and supervisory lapses. In 2023, the CFTC fined the firm $20 million for widespread recordkeeping failures.
In 2019, employees at the firm, even senior staff, began using unapproved communication tools like WhatsApp for business discussions. These messages were not properly retained, violating federal recordkeeping requirements.
In 2020, the CFTC ordered Interactive Brokers LLC to pay more than $12 million and required the firm to disgorge $706,214 in earnings tied to fraudulent activity. This case marked the first enforcement of Regulation 42.2, which enforces compliance with the Bank Secrecy Act (BSA).
The firm’s failure to detect and report suspicious activity in customer accounts, including schemes like the Haena Park case, caused investors to lose over $23 million. Its AML program proved to be under-resourced and ineffective, with weak processes for identifying warning signs or filing Suspicious Activity Reports (SARs).
OFAC Sanctions Violations
In 2025, an Interactive Brokers LLC lawsuit settled for $11.8 million with the OFAC for over 12,000 apparent violations of U.S. sanctions programs. These violations took place between 2016 and 2024 and involved transactions connected to sanctioned regions, including Iran, Cuba, Syria, and Crimea.
Interactive Brokers LLC also processed securities trades for entities blocked under the Chinese Military-Industrial Complex sanctions, the Global Magnitsky Sanctions, and the Venezuela Sanctions Regulations.
Despite implementing some compliance measures, such as IP geo-blocking, the firm’s systems were insufficient to prevent sanctioned individuals and entities from accessing its platform, allowing transactions to occur across multiple sanctions programs.
Systemic Compliance Failures
Regulators identified significant gaps in the firm’s AML and sanctions compliance programs, which lacked the resources and technology required to monitor the scale of its global operations.
Supervisory systems were also found to be inadequate, with senior personnel sometimes contributing to violations. For example, Interactive Brokers LLC failed to enforce its own policies on employee communications, leading to widespread recordkeeping breaches.
Pump-and-Dump Scams
Scammers frequently leverage platforms such as Facebook, WhatsApp, and Telegram to advertise fake or nonexistent investment opportunities aimed at stealing money.
Meyer Wilson Werning can assist only if a financial advisor or brokerage firm was involved in the transfer of funds to the scheme. Cases involving independent social media scammers are not eligible.
Call Meyer Wilson Werning to File an Interactive Brokers LLC Lawsuit
At Meyer Wilson Werning, we are dedicated to holding firms like Interactive Brokers LLC accountable for misconduct that harms investors. Filing an Interactive Brokers LLC complaint or pursuing an Interactive Brokers LLC lawsuit can help recover losses.
Our lawyers are here to help you. Call us today for a free consultation.
