According to Cointelegraph reported on November 27, the US Commodity Futures Trading Commission (CFTC) received more than $ 1.3 billion in administrative penalties in fiscal 2019, including funds collected from cryptocurrency operators.
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According to the CFTC's fiscal 2019 annual report, the regulator received a total of $ 1,321,046,710 in civil enforcement fines, settlements, and compensation in its enforcement actions. This number is 39% higher than the previous fiscal year.
Well-known crypto fraud
Although the CFTC did not specify the exact amount of regulatory penalties obtained from digital currency-related companies, it pointed out several allegations involving bitcoin fraud. The agency noted that the crypto company Control-Finance Ltd scammed more than 1,000 investors with a value of $ 147 million and washed out at least 22,858 bitcoins.
The CFTC also mentioned a civil case against Jon Barry Thompson and Joseph Kim. Thompson was accused of involvement in $ 7 million in Bitcoin fraud, and Joseph King was charged with embezzling several Bitcoin and Litecoin (LTC) and fined $ 1.1 million. The document continues:
"In addition to successfully suing its previously charged case involving digital assets, the agency has also received a verdict confirming the Commission's authority to sue fraud and manipulation involving digital assets that are in compliance with the legal requirements for commodities. definition."
The CFTC submitted a total of 69 enforcement actions in 2019, slightly higher than the 5-year average of 67.5.
CFTC's new chairman calls for principled regulation of cryptocurrencies
In early November, CFTC Chairman Heath Tarbert called for "principal regulation" of cryptocurrencies. He said the approach involved moving from detailed rules to greater reliance on high-level and "broadly stated principles" to define regulated company and product standards.
At the end of October 2019, the CFTC approved its financial technology research unit LabCFTC to establish an independent operating office. Subsequently, the CFTC's fintech center began reporting directly to Talbot. In the announcement, Talbot stated:
"Blockchain, digital assets and other developments have brought tremendous opportunities to our economy. Now is the time for LabCFTC to play a greater role, and we are working hard to develop and set the rules for these transformative new products."