Home Coins Bitcoin (BTC) The CFTC Files Complaint Against Crypto Trading Company

The CFTC Files Complaint Against Crypto Trading Company


The United States Commodity Futures Trading Commission (CFTC) on Thursday, September 24, filed a complaint against crypto dealing Paxforex for allegedly soliciting or accepting business from US customers without relevant registration.

According to a report, the CFTC wants a U.S. court to stop Paxforex from continuing with the “unlawful acts and practices,” as well as to compel the company to comply with the relevant laws. Furthermore, the commodity regulator wants the court to stop the defendant “from engaging in any commodity-related activity.”

In a complaint submitted to the Texas Southern District Court, the CFTC argues that from March 2018 to present, Paxforex violated the law by:

“Soliciting or accepting orders from non-eligible contract participants (“non-ECPs”), not conducted on or subject to the rules of any Commission-regulated exchange, for the purchase or sale of gold, silver, ethereum (ETH), litecoin (LTC), and bitcoin (BTC) on a leveraged, margined or financed basis that does not result in the actual delivery of the commodities to the customer.”

Furthermore, the CFTC states that by not registering as a futures commission merchant (FCM) with the Commission, the trading company, which “accepts money, securities, or property (or extends credit in lieu thereof) in the form of bitcoin, is in violation of Section 4d(a)(1) of the Act, 7 U.S.C. § 6d(a)(1) (2018).”

On its website, Paxforex claims owners of the company have extensive experience in forex, stocks, options, and CFDs markets as traders and dealers. This experience was gained when the founders worked in managerial positions with the largest brokers, who are now our major competitors.”

In the meantime, the CFTC is asking the court to impose civil monetary penalties and remedial ancillary relief, including trading and registration bans, restitution, rescission, pre-judgment, and post-judgment interest.

What do you think of the charges against Paxforex? Tell what you think in the comments section below.

Tags in this story
Bitcoin, CFTC, ether, futures commission merchant, litecoin, non-eligible contract participants, PaxForex, registration, Texas Southern District Court, trading platform, U.S. Commodity Futures Trading Commission (CFTC)

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
474FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,551FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.17
GBP
1.29
CHF
1.09
NOK
0.10
JPY
0.01
CAD
0.75
AUD
0.70

Most Popular

Japan is the ‘leading candidate’ for Ripple’s new headquarters: SBI Holdings CEO

Japanese financial giant SBI Holdings CEO Yoshitaka Kitao said that Japan is the most likely country Ripple will relocate to, should it leave...

Despite strong security token growth, tZERO continues to lose money

Despite explosive third-quarter growth in the security token sector, Overstock’s Q3 2020 earnings report reveals that its tZERO alternative trading system (ATS) has...

Wrapped Bitcoin is now Ethereum’s 6th Largest Token

Wrapped Bitcoin (WBTC) reached all-time highs today in terms of market capitalization and number of tokens.WBTC is the most popular version of Bitcoin tokenized...

The Hoff claims to have invented Bitcoin in 12th anniversary video

Nine celebrities with profiles on the sponsored video-sharing platform Cameo have published messages wishing Bitcoin (BTC) a happy birthday ahead of the twelfth anniversary...
bitcoin
Bitcoin (BTC) $ 13,240.18
ethereum
Ethereum (ETH) $ 382.15
ripple
XRP (XRP) $ 0.237047
tether
Tether (USDT) $ 0.998764
bitcoin-cash
Bitcoin Cash (BCH) $ 261.77
bitcoin-cash-sv
Bitcoin SV (BSV) $ 162.97
litecoin
Litecoin (LTC) $ 53.67
eos
EOS (EOS) $ 2.59
binancecoin
Binance Coin (BNB) $ 28.34
okb
OKB (OKB) $ 4.55
tezos
Tezos (XTZ) $ 1.82
leo-token
LEO Token (LEO) $ 1.28
cardano
Cardano (ADA) $ 0.091014
monero
Monero (XMR) $ 119.77
stellar
Stellar (XLM) $ 0.075449
chainlink
Chainlink (LINK) $ 10.95
huobi-token
Huobi Token (HT) $ 4.17
tron
TRON (TRX) $ 0.025896
usd-coin
USD Coin (USDC) $ 0.999756
dash
Dash (DASH) $ 65.76
neo
NEO (NEO) $ 14.49
iota
IOTA (MIOTA) $ 0.250332
nem
NEM (XEM) $ 0.094170
zcash
Zcash (ZEC) $ 55.98
maker
Maker (MKR) $ 525.59
paxos-standard
Paxos Standard (PAX) $ 0.998458
ethereum-classic
Ethereum Classic (ETC) $ 5.30
vechain
VeChain (VET) $ 0.010010
true-usd
TrueUSD (TUSD) $ 0.999119
ftx-token
FTX Token (FTT) $ 3.72
kucoin-shares
KuCoin Shares (KCS) $ 0.849613
waves
Waves (WAVES) $ 3.00