Kraken Charged by CFTC Over Margined Crypto Transactions, $1.25 Million Penal...
The Commodity Futures Trading Commission (CFTC) has charged Payward Ventures, the operator of cryptocurrency exchange Kraken, “for illegally offering margined retail commodity transactions in digital assets, including bitcoin, and failing to register.” CFTC Charges Kraken, Imposes $1.25 Million Penalty The Commodity Futures Trading Commission (CFTC) announced Tuesday that it has imposed a $1.25 million penalty on cryptocurrency exchange Kraken. The derivatives regulator issued an order filing and settling charges against Payward Ventures Inc., dba Kraken, “for....
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The Commodity Futures Trading Commission (CFTC) has charged 14 trading platforms that claim to offer crypto-related investments but have either failed to register with the CFTC or falsely claimed to be registered. These websites also exhibit other signs of being scams.
14 Entities Charged by CFTC
After charging major cryptocurrency exchange Kraken, the Commodity Futures Trading Commission (CFTC) has now gone after trading platforms claiming to offer crypto-related investments.
The CFTC announced Wednesday that it has “filed charges against 14 entities for....
“Margined, leveraged or financed digital asset trading offered to retail U.S. customers must occur on properly registered and regulated exchanges in accordance with all applicable laws and regulations,” said Vincent McGonagle, the CFTC’s acting director of enforcement. The United States Commodity Futures Trading Commission, or CFTC, is ordering crypto exchange Kraken to pay more than a million dollars in civil monetary penalties related to allegations the exchange is violating the Commodity Exchange Act.In a Sept. 28 statement, the CFTC said U.S.-based crypto exchange Kraken — operating....
The U.S. Commodity Futures Trading Commission (CFTC) ordered Bitfinex, a Hong Kong-based bitcoin exchange, to pay $75,000 for offering illegal, off-exchange, financed retail commodity transactions in cryptocurrencies, and for failing to register as a futures commission merchant (FCM) as required by law, according to a CFTC press release. The order requires the exchange to cease and desist from future violations of the Commodity Exchange Act (CEA). CFTC Cites Dodd-Frank Act. From April 2013 to at least February 2016, the CFTC found Bitfinex allowed users to borrow funds from one another to....
Some notable experts claim that this regulatory framework presented by the CFTC may have prevented Bitfinex from using cold storage. On June 2, the U.S. Commodity Futures Trading Commission (CFTC) fined Bitfinex US$75,000 for handling illegal off-exchange financial retail commodity transactions without registering as a futures commission merchant. The CFTC – alongside other regulators – required the exchange to deliver the digital currency directly to their users, instead of holding the private keys controlling the traded coins. The official order stated that Bitfinex “did not actually....
The U.S. Commodity Futures Trading Commission (CFTC) has charged Mirror Trading International (MTI) and its operator with a $1.7 billion fraud involving bitcoin. This action is the regulator’s largest fraud scheme case involving the cryptocurrency.
CFTC Takes Action Against MTI
The CFTC announced Thursday that it has charged a “South African pool operator and CEO with $1.7 billion fraud involving bitcoin.” The regulator added:
This action is CFTC’s largest fraud scheme case involving bitcoin.
The derivatives watchdog has filed a civil....