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CFTC Charges Firm With Illegally Providing Leveraged Trading of Crypto, Gold
A Caribbean-based firm is in hot water with the CFTC for allegedly allowing U.S. retail investors to partake in leveraged trading of cryptocurrencies and precious metals.
A company based in St. Vincent and the Grenadines is in hot water with the Commodity Futures Trading Commission (CFTC) for allegedly allowing U.S. retail investors to partake in leveraged trading of cryptocurrencies and precious metals.
STORY CONTINUES BELOW
- The firm, Laino Group Limited (trading as PaxForex), is accused of illegally conducting retail commodity transactions and not having registered as a futures commission merchant (FCM).
- From around 2018 on, PaxForex is said to have unlawfully traded bitcoin, ether, litecoin, gold, and silver without conducting transactions through a registered contract market, violating the Commodity Exchange Act.
- The company is further alleged to have acted as an FCM, with staff and agents soliciting and taking orders for retail commodity transactions, without being registered as such with the CFTC.
- “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,” according to James McDonald, CFTC Division of Enforcement director.
- The commission is seeking disgorgement of "ill-gotten gains," penalties and restitution, as well as permanent registration and trading bans.
- A civil enforcement action was filed Monday at the U.S. District Court for the Southern District of Texas.
Also read: OCC's First Issued Guidance for Stablecoins Brings More Questions
Daniel Palmer
Previously one of CoinDesk's longest-tenured contributors, and now one of our news editors, Daniel has authored over 750 stories for the site. When not writing or editing, he likes to make ceramics.
Daniel holds small amounts of BTC and ETH (See: Editorial Policy).
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