The US Regulator has Charged Foreign Trading Company over Offering Unlawful Leverage Transactions of Bitcoin

The US Commodity Futures Trading Commission (CFTC) has charged a foreign trading company with offering unlawful leveraged transactions in Bitcoin, Ether, and Litecoin.

Civil Enforcement Action against Company

CFTC has a “civil enforcement action” in the US court against trading site PaxForex of Laino Group Limited. According to the Commodity Futures Trading Commission, the company engages in illegal retail commodity transactions of Bitcoin, Ether, Litecoin, silver, and gold. Moreover, PaxForex did not register with the US regulator as a futures commission merchant (FCM).

Division of Enforcement Director James McDonald said:

“This action shows the CFTC’s continued commitment to ensuring that entities offering leveraged, retail transactions within our jurisdiction—including those involving digital assets—register with the CFTC.”

CFTC stated:

“According to the complaint, from at least March 2018 to present, PaxForex offered or engaged in unlawful retail commodity transactions in ether, litecoin, bitcoin, gold, and silver. The defendant violated the CEA by failing to conduct these transactions subject to the rules of a board of trade that had been designated or registered by the CFTC as a contract market.”

Company Pretend to Act as FCM

The complaint also explains that the foreign trading platform performed operations as a futures commission merchant via its employees. Moreover, it acted as “the counterparty for these transactions and extended credit or accepted money, securities, and property in the form of bitcoin and other assets in exchange for margin trades or contracts. Despite acting as an FCM, the defendant failed to register with the CFTC as required.”

While CFTC seeks “disgorgement of ill-gotten gains, civil monetary penalties, restitution, permanent registration and trading bans, and a permanent injunction against further violations of the CEA as charged.”

The US regulator asks people to check the registration number of the company before investing funds in it. A customer should not deposit funds in the company if it is not a registered company. The registration number can be found with NFA BASIC.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

Osprey Funds Launches Bitcoin Trust, known as OBTC

Similar to Grayscale’s Bitcoin Trust, Osprey has launched its product known as OBTC. Grayscale’s competitor is now in the market, but we will see whether it become successful in catching the attention of wealthy investors or not. Competitor of Grayscale OBTC is an over-the-counter trust, which will function similarly to GBTC. According to the company, […]

Cumulative Bitcoin Mining Revenue Surpasses $20 Billion

On-chain metrics show miners have generated a lot of revenue from the ongoing Bitcoin rally- from $20,000 to above $40,000. The diversity in the mining infrastructure is a good thing for the network’s security. Record Increase in the Past Two Years Analytics firm Glassnode revealed over Twitter that “cumulative” miner revenue has crossed above $20 […]

Bitcoin Attracts Investments from Pension Funds and Endowments

Bitcoin has not only attracted the attention of asset management firms but also endowments and pension funds. After the top digital asset claimed $42,000, some crypto experts claim it would attain a $1 trillion market cap soon. Allocations are Increasing Bloomberg reported that money in Bitcoin is now coming from pension funds, hedge funds, endowments, […]

XLM Price Increases by More Than 100% in a Single Day

The price value of Stellar (XLM) doubles over the day thanks to the Securities and Exchange Commission’s lawsuit against San Francisco-based Ripple. CoinMarketCap data places XLM at $0.38 as it surges by over 100% in the last 24-hours. Due to outstanding performance of the cryptocurrency, the market capitalization has reached above $7 billion. Some market […]

Don't Miss Out On Bitcoin Storm!

#1 Bitcoin and Cryptocurrency Price Prediction Software / Trading Robot

Sign Up

Try Crypto Engine With a Trusted Broker