CFTC Charges PaxForex for Offering Illegal Leverage Transactions in Bitcoin, Ether, Litecoin


In addition, the CFTC alleged that the foreign trading platform acted as a counterparty for the transactions and extended credit or accepted money, securities, and property in the form of bitcoin and other assets in exchange for margin trades or contracts.

CFTC ensures that commodity trading platform comply with the law

The Commission is seeking a court order requiring PaxForex to disgorge ill-gotten wealth and to pay civil monetary penalties. It is also seeking restitution, permanent registration and trading bans, and a permanent injunction against its further violations of the CEA.

In a statement, CFTC Division of Enforcement Director James McDonald said the civil enforcement action shows that the Commission remains committed to enforcing the CEA.

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They are making sure that “entities offering leveraged, retail transactions within our jurisdiction—including those involving digital assets—register with the CFTC,” said McDonald.

“We will vigorously enforce these requirements to preserve market integrity and protect customers,” he added.