Lately, there have been many regulation issues popping up in some countries. Few countries have imposed strong laws for regulations on crypto trading and exchange platforms. Likewise, the CFTC has announced that the US federal court has imposed a penalty against a forex broker.
The Commodity Futures Trading Commission (CFTC) has revealed an announcement that the US Federal Court has ordered against PaxForex. On Friday, a forex broker, PaxForex was inflicted with a permanent ban and penalty of $374,864.
The Judge of US district court for Southern District of Texas, David Hittner, has claimed that the forex trading platform engages in illegal financed transactions in cryptocurrencies. The legal name of PaxForex is “Liano Group limited”, where the firm is imposed to pay a civil monetary penalty.
Moreover, the US federal court has ordered against PaxForex, that the platform is inflicted with permanent trading and registration bans. The CFTC explained that the complaint filed on September 24, 2020, was issued in court on June 30, 2021. Besides, the CFTC stated a detailed answer for charging against PaxForex:
“Charging PaxForex with engaging in illegal, off-exchange transactions in Ether, Litecoin, and Bitcoin, as well as precious metals and foreign currency, with retail customers on a leveraged, margined, or financed basis, and acting as a futures commission merchant (FCM) without CFTC registration.”
PaxForex Involved in “Unlawful” Transactions
According to the complaint submitted in the court, it is stated that PaxForex has been involved in “unlawful” transactions. The transaction includes precious metals like gold, silver, and cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Additionally, the regulator asserted that the trading firm has violated the CEA by not following the applied rules. They failed to conduct the transaction in accordance with the rules of the board for trade which has been designed and registered with the CFTC.
The CFTC advises the public to confirm the firm’s CFTC registration before investing funds in the platform. The Commission warned the public to be cautious as they noted that the broker has been accepting orders for forex. As well as accepting money and cryptos for retail commodity transactions, through its employees and agents.
Finally, the CFTC states that the customers should exercise caution while investing funds in an unregistered company. Notably, the CFTC has also filed a complaint against Troy Manson and his company, ZTegrity, for alleged involvement in forex-related fraud.
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