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CFTC charges 14 trading platforms that offer crypto-related investments – Begin News Regulation


The Commodity Futures Trading Commission (CFTC) has charged 14 trading platforms that claim crypto-related investments but have failed to register with the CFTC or falsely claim to be registered. These websites also show other signs of being scammed.

14 institutions have been charged by the CFTC

After charging the main cryptocurrency exchange Kraken, the Commodity Futures Trading Commission (CFTC) is now demanding crypto-related investments after the trading platform.

The CFTC announced on Wednesday that it had “filed charges against 14 companies for failing to register as Future Commission Merchants (FCM) or for false and misleading claims of CFTC registration and membership in the National Futures Association (NFA).”

1 Trading Most trading platforms show signs of fraud, such as using the same website, asking users to pay to join the platform before starting trading, claiming to be regulated, and guaranteeing huge returns. For example, some of the 14 websites display this message: “Make a lot of money by investing. With our professional team of traders, you are guaranteed your earnings. ”

Derivatives Watchdog Details:

Twelve of the allegations allege that firms are acting as FCMs, giving the general public the opportunity to buy binary options based on the price of products such as Bitcoin, foreign currency and cryptocurrencies.

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

Among the 12 platforms, Tradingforexpay, Bitfxprofit, Globalnationfx, Binancefxtrade, Maxforexoption and Excotradeoptions have almost identical websites. The other three – CryptoFoxTrader, Smart Signal and PrimeExpert Trade – look almost identical. Procryptominners website is now offline. The other two platforms are Profx-Capitals and Star Fx Pro.

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

The websites of the two platforms look very similar, each saying that it “offers its customers a variety of services with cryptocurrencies such as Forex and Bitcoin trading which are products of interstate trading.”

CFTC details: “Each complaint directs entities to close and refrain from violating the Commodity Exchange Act and CFTC rules.”

Vincent McGonagall, Acting Director of Enforcement, commented:

Today’s activities reflect CFTC’s dedicated efforts to ensure that bad actors falsely claim to protect legitimate registrations and the trading public.

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

Image credit: Shutterstock, Pixabay, WikiCommons

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