On Thursday, September 24, the U.S. Commodity Futures Trading Commission (CFTC) filed a complaint against cryptocurrency trader Paxforex for allegedly soliciting or accepting business from U.S. clients without relevant registration.
According to a report, the CFTC wants a US court to prevent Paxforex from prosecuting “illegal acts and practices,” and force the company to comply with relevant laws. In addition, the commodity regulator wants the court to prevent the defendant “from engaging in any commodity related activity.”
In a complaint filed with the Texas Southern District Court, the CFTC argues that from March 2018 to today, Paxforex broke the law by:
“Solicitation or acceptance of orders from non-eligible contract participants (” non-ECP “), not executed or subject to the rules of a stock exchange regulated by the Commission, for the purchase or sale of gold, silver, Ethereum (ETH), Litecoin (LTC) and Bitcoin (BTC) on a leverage, margin or funding basis that does not result in the actual delivery of the products to the customer. “
Further, the CFTC states that by not registering as a Futures Commission Merchant (FCM) with the Commission, the trading company, which “accepts money, securities or property (or grants credit in lieu) in the form of bitcoin, violation of section 4d (a) (1) of the Act, 7 USC § 6d (a) (1) (2018). “
On its website, Paxforex claims that the owners of the company have extensive experience in the forex, stocks, options and CFDs markets as traders and dealers. This experience was gained when the founders held leadership positions with the largest brokers, which are now our main competitors.
In the meantime, the CFTC asks the court to impose civil monetary penalties and ancillary remedies, including bans on trade and registration, restitution, termination, pre-judgment and post-judgment interest.
What do you think of the charges against Paxforex? Say what you think in the comments section below.
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