Providing fraudulent leveraged trades in ETH, LTC, BTC, a company was fined by CFTC


U.S. Commodity Futures Trading Commission ( CFTC) has fined PaxForex, a corporation headquartered in St. Vincent and the Grenadines, to Laino Group Limited for participating in illicit retail trade in bitcoin, gold and silver commodities and for failing to file as a futures market merchant (FCM) with the CFTC, as published recently.

CFTC reported that for more than two years, PaxForex had provided illicit retail sales in not only major digital currencies such as ether, litecoin, bitcoin, but also gold and silver.

The announcement further claimed that the law enforcement authorities have charged PaxForex with lending money or taking capital, shares, and properties in the form of bitcoin and other properties in return for margin transactions or contracts-all of which enable the firm to file as an FCM with the CFTC. Even so, the CFTC argued that PaxForex had not obtained this authorization and had breached the Commodity Exchange Act.

CFTC intended to refund the ill-gotten profits of the accused business to those impacted and also enforced other fines, such as permanent registration and trade prohibitions, among many others. James McDonald, Head of the Compliance Branch, said in a declaration: 

This action shows the CFTC’s continued commitment to ensuring that entities offering leveraged, retail transactions within our jurisdiction—including those involving digital assets—register with the CFTC.


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