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FINRA Arbitrators Award Schwab Client $1.34 Million in Cryptocurrency Scam Dispute

Posted on October 2nd, 2026 at 12:57 PM
FINRA Arbitrators Award Schwab Client $1.34 Million in Cryptocurrency Scam Dispute

From the desk of Jim Eccleston at Eccleston Law

A Financial Industry Regulatory Authority (FINRA) Dispute Resolution Services arbitration panel awarded nearly $1.34 million in compensatory damages to a Charles Schwab & Co. Inc. client in a dispute involving wire transfers from an elderly client's trust account to cryptocurrency platform Okcoin.

The client filed the claim against Schwab in 2024, alleging negligence, breach of contract, violations of FINRA rules and breach of fiduciary duty, according to the FINRA arbitration award. Two arbitrators ruled in favor of the claimants, while a third dissented. According to InvestmentNews, the panel denied the claimants' request for attorneys' fees.

The client alleged that three wire transfers left the Schwab trust account and argued Schwab failed to safeguard customer assets and respond to signs of senior financial exploitation.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra arbitration, cryptocurrency scam, securities law, investment fraud, broker-dealer dispute

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