- The SEC under Chair Gary Gensler is continuing its crackdown on the crypto sector.
- The CFTC contradicts SEC’s stance on cryptocurrencies being securities.
Former Deutsche Bank investment banker Rashawn Russell is the subject of a civil enforcement action brought by the U.S Commodities Futures Trading Commission (CFTC) in the United States District Court for the Eastern District of New York.
Furthermore, Russell is accused of defrauding investors out of at least $1 million. This is via a digital asset trading fund, according to the CFTC’s accusations.
The CFTC is asking for the defendant to pay back their losses, disgorge their profits, pay a fine, and have their trading and registration privileges permanently revoked. Other penalties include an injunction against future infringements of the CFTC’s rules and the Commodities Exchange Act (CEA).
Moreover, Russell lied to his backers by promising a 25 percent return on investment (RoI). And that they would be repaid in USDC stablecoin. He took $1 million from investors and spent it on himself, gambling businesses, and Ponzi-style payouts to new investors.
Commodity or Security?
In this most recent crypto fraud and misappropriation lawsuit, the Commodities Futures Trading Commission (CFTC) classified Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) as commodities. The U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) continue to argue over who should regulate the cryptocurrency sector.
Moreover, the SEC under Chair Gary Gensler is continuing its crackdown on the cryptocurrency sector, based on the premise that all cryptocurrencies are securities. CFTC Chairman Rostin Behnam has reaffirmed that Bitcoin, Ethereum, and stablecoins like USDC are commodities. Moreover, in a recent case against Binance, the CFTC categorized Bitcoin, Ethereum, and Litecoin as commodities.
