CFTC Fines 12 Firms For Illegal Trading In Cryptocurrency Options

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The US Commodity Futures Trading Commission fined 12 New York-based cryptocurrency options trading firms for failing to register and providing false information.

The US Commodity Futures Trading Commission (CFTC) website lists 12 companies that have offered investors options on foreign currencies and crypto assets, including Bitcoin. These are Tradingforexpay, Cryptofxtrader, Bitfxprofit, Globalnationfx, MaxForexOption, ProCryptoMinners, ProFX-Capitals, Smarter Signals, Prime Expert Trade, Star Fx Pro, Excotradeoptions and BinanceFxTrade.

The latter company, despite its name, has nothing to do with the Binance trading platform. According to the ministry’s statement, none of these organizations was registered as an intermediary in urgent exchange transactions (FCM).

In addition, the regulator mentioned the firms Climax Capital FX and Digitalexchange24.com, which offered services related to trading in derivatives. These organizations provided investors with false information about the registration and licensing of the National Futures Association (NFA). The NFA license used by these firms was for a person who was once registered with the CFTC but who died in 2009.

“We are committed to eliminating fraudulent fraudsters who claim to be registered under US law and are doing our utmost to protect the public,” said CFTC Acting Chief Enforcement Officer Vincent McGonagle.

This week, the CFTC fined cryptocurrency exchange Kraken $ 1.25 million for providing access to margin trading and violating registration requirements from June 2020 to July 2021. In addition, in August, BitMEX, a cryptocurrency derivatives exchange, agreed to pay the CFTC and the United States Financial Crimes Enforcement Network (FinCEN) a $ 100 million fine for illegal doing business in the United States, as well as violating KYC and AML rules.

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