The US Commodity Futures Commission (CFTC) recently released its annual report, which showed that as of September 30, 2019, a total of more than 1.3 billion US dollars in fines had been collected.
The report shows that the CFTC will continue to monitor digital assets that meet the definition of "commodities", including commodity futures, options and financial futures, options markets that meet the definition of "commodities," and protect market participants and the public from commodity and financial futures and options. The infringement of related fraud, market manipulation, and improper business operations guarantees the openness, competitiveness and financial reliability of the futures and options market.
On June 18, 2019, the CFTC filed a civil lawsuit with the Southern District Court of New York in the United States, indicting Bitcoin trading and investment company Control-Finance Limited and its principal Benjamin Reynolds. The allegations show that the company abused the market's enthusiasm for bitcoin purchases, defrauded and misappropriated at least 22,858.822 bitcoins from more than 1,000 users, and the amount involved was 147 million US dollars at the time of BTC price conversion .
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CFTC law enforcement director James McDonald said: "CFTC will continue to vigorously monitor the bitcoin market, including fraudulent activities involving digital assets. If these frauds are not regulated, they will not only harm the interests of traders, but also hinder innovation."
CFTC pointed out that Control-Finance Limited and Benjamin Reynolds solicited users to buy bitcoin through false statements, including that users can earn 1.5% of daily profits through bitcoin transactions, up to 45% per month; promised to protect users' Bitcoin. In fact, the company provided users with false account balances and profit data and compiled monthly transactions reports. In addition, the defendant is also suspected of illegally embezzling and transferring users' bitcoins.
The CFTC requires the defendant to pay a civil fine, return the illegal proceeds, make financial compensation to the victim, fulfill the transaction and registration ban.
On September 30th, the CFTC filed a civil lawsuit with the Southern District Court of New York, alleging that Jon Barry Thompson of Easton, Pennsylvania falsely claimed that he had bitcoin in his hands to trick users into making purchases. After receiving the remittance, the funds were not transferred Delivered bitcoin, involving more than $ 7 million.
"The fraudulent behavior in this case harmed the integrity of the innovation market. The eradication of misconduct involving crypto assets is essential to promote the steady development of this emerging field. The CFTC will continue to strengthen its efforts to supervise the crypto asset field and crack down on it. Fraud in the field. "
The CFTC requires the defendant to make financial compensation to the victim, pay a civil fine, perform a permanent transaction and registration ban, and a permanent ban that may violate the Commodity Exchange Law and the Commodity Futures Trading Commission Regulations in the future.
In July this year, there were reports that the CFTC is investigating BitMex, a cryptocurrency derivative exchange registered in Seychelles. BitMex is one of the world's largest cryptocurrency derivative exchanges. It is suspected of failing to obtain CFTC approval. To provide relevant services to US residents.