Skip to main content

CFTC Charges 14 Trading Platforms Offering Crypto-Related Investments

https://motleybloggers.com/wp-content/uploads/2021/09/cftc-charges-14-trading-platforms-offering-crypto-related-investments.jpg

CFTC Charges 14 Trading Platforms Offering Crypto-Related Investments

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 either failing to register as futures commission merchants (FCMs) or else making false and misleading claims of having CFTC registration and National Futures Association (NFA) membership.”


Most of the 14 trading platforms exhibit signs of scams, such as using identical websites, asking users to pay to join the platforms before they can start trading, claiming to be regulated, and guaranteeing huge returns. For example, some of the 14 websites display this message: “Earn huge return on investment. With our professional team of traders, you are guaranteed of your earnings.”


The derivatives watchdog detailed:


Twelve of the complaints allege that the entities are acting as FCMs by offering to the general public the opportunity to purchase binary options based off the value of commodities like foreign currencies and cryptocurrencies including bitcoin.


These platforms “encourage customers to transfer money or assets to them,” but none of them have registered as an FCM, the regulator said.


Among the 12 platforms, Tradingforexpay, Bitfxprofit, Globalnationfx, Binancefxtrade, Maxforexoption, and Excotradeoptions have almost identical websites. Three more — Cryptofxtrader, Smarter Signals, and Prime Expert Trade — look nearly identical. Procryptominners’ website is now offline. Two other platforms are Profx-Capitals and Star Fx Pro.


Besides the 12 platforms, the CFTC states that Climax Capital FX and Digitalexchange24.com “offer services related to trading in futures or other derivative products and falsely claim to be registered with the CFTC and a member of NFA.”


The two platforms’ websites also look very similar, each stating that it “offers a variety of services to its customers in connection with trading forex and cryptocurrencies like bitcoin that are commodities in interstate commerce.”

The CFTC detailed: “Each complaint seeks orders directing the entities to cease and desist from committing violations of the Commodity Exchange Act and CFTC regulations as charged.”


Division of Enforcement Acting Director Vincent McGonagle commented:


Today’s actions reflect the CFTC’s dedicated efforts to aggressively root out bad actors falsely claiming to hold legitimate registrations and protect the trading public.


What do you think about the CFTC going after these trading platforms? Let us know in the comments section below.



Origina post from
https://motleybloggers.com/cftc-charges-14-trading-platforms-offering-crypto-related-investments/

Comments

Post a Comment

Popular posts from this blog

P2P Bitcoin Traders in Nigeria Think Outside the Box in the Wake of CBN Restrictions

After the Central Bank of Nigeria issued a directive targeting the country’s cryptocurrency industry, bitcoin and altcoin trade volumes on centralized exchanges immediately plunged. Nevertheless, the new regulations seem to have succeeded in boosting crypto trade volumes on informal markets or on peer-to-peer trading platforms. Nigerian Crypto Traders Get Creative Still, the increasing trades on informal platforms have also led to increased reports of users losing money to con artists. Moreover, with the CBN seemingly eager to see volumes of crypto trades plummet, Nigerian users had to find ingenious but legal ways of getting around the central bank’s imposed restrictions. As shown in one local report , one such legal way is through an app created by one local crypto start-up, Patricia. According to the report, this application is already enabling Nigerian users to buy or sell their crypto assets securely and without running afoul of CBN regulations. Therefore, in this repor...
Post a Comment
Read more

A Jacobin Podcast Review: Critiques on Crypto and Sterlin’s Response

https://motleybloggers.com/wp-content/uploads/2022/01/a-jacobin-podcast-review-critiques-on-crypto-and-sterlins-response.jpg The following opinion editorial is a Jacobin Podcast review written by the author Sterlin Lujan , the chief risk officer with Cryptospace. The Jacobin Podcast episode called: “ Dig: Cryptocurrency w/ Edward Ongweso Jr & Jacob Silverman, ” touches upon “cryptocurrency, NFTs, Elon Musk, the metaverse, meme stocks, and techno-utopianism amid the crushing reality of our neoliberal hellscape.” Cryptocurrency isn’t fringe technology anymore. Over the last decade, it has become embedded into finance, culture, and even our social life. It’s drastically changing the way we think about money, economics, and human action. However, some people, primarily on the left, are skeptical of cryptocurrency. Many of them hate it, regardless of how much of a godsend it has been for many. My friend, thought leader, author, and psychedelic visionar...
Post a Comment
Read more

Bitcoin, Ethereum Technical Analysis: ETH Back Under $2,000 as Balenciaga Gains Lose Steam

https://motleybloggers.com/wp-content/uploads/2022/05/bitcoin-ethereum-technical-analysis-eth-back-under-2000-as-balenciaga-gains-lose-steam.jpg Following strong gains to start the week, BTC once again fell under $30,000, as crypto prices moved lower on Tuesday. The downturn follows up from yesterday’s rally, which came as Balenciaga announced it would be accepting crypto payments. ETH also dropped, falling under $2,000 today. Bitcoin Bitcoin fell under $30,000 on Tuesday, as bears returned to action following a green start to the week. Following a high of $30,547.50 during Monday’s session, BTC /USD fell to an intraday low of $28,975.56 earlier today. Today’s drop saw BTC fall by over 5% in the day, as bullish sentiment following the Balenciaga crypto announcement faded. BTC /USD – Daily Chart Since then, bears have now pushed prices closer to support at $28,800, which is an area where BTC has resided over the past few weeks. Looking at the chart, the 14-da...
Post a Comment
Read more