The U.S. Commodity Futures Trading Commission (CFTC) has charged PaxForex, a broker, with illegal commodity trades involving digital assets and without the necessary registration. The suit was filed in the Southern District of Texas.
ENFORCEMENT NEWS: CFTC Charges Foreign Trading Platform with Offering Illegal Leveraged Transactions in Ether, Litecoin, and Bitcoin. https://t.co/ogUSNo9PSH
— CFTC (@CFTC) September 28, 2020
Laino Group Limited, registered in Saint Vincent and the Grenadines, operates under the PaxForex brand. The CFTC believes that since 2018 it has attracted American investors to trade BTC, ETH, LTC, and precious metals, ignoring the requirements of the Commodity Exchange Act.
The regulator contends that the defendant offered intermediary services in trades, encouraging users to place orders. In court, the regulator intends to obtain the recovery of unlawfully appropriated funds from the Laino Group and a ban on operating.
Earlier in April, the CFTC announced a competition to develop tools for identifying illicit bitcoin-futures offers to U.S. users by foreign entities.
In July 2020, CFTC Chairman Heath Tarbert said he was prepared to add futures on altcoins. He said implementing this would require approval from the Securities and Exchange Commission.
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