US Federal Court Imposes Permanent Trading Ban on PaxForex
- The court order seeks the defendant to pay a civil monetary penalty of $374,864.
The Commodity Futures Trading Commission (CFTC) announced on Friday that a US Federal Court imposed a ban and a penalty against PaxForex, a forex broker, which operates under the regulation of St. Vincent and the Grenadines. Judge David Hittner of the US District Court for the Southern District of Texas determined that the forex Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real offers illegal leveraged transactions in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw and commodities.
The default judgment orders PaxForex, which has a legal name dubbed 'Laino Group Limited', to pay a civil monetary penalty of $374,864. Furthermore, the platform was imposed with permanent trading, solicitation and registration bans. “The order, entered on June 30, 2021, stems from a CFTC complaint filed on September 24, 2020, that charged PaxForex with engaging in illegal, off-exchange transactions in Ether, Litecoin and Bitcoin, in addition to 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 as required,” the CFTC detailed.
Also, the complaint filed before the court alleges that PaxForex has been involved in 'unlawful' precious metals transactions such as Gold, Silver and cryptos like Bitcoin (BTC) and Ethereum (ETH). “The defendant violated the CEA by failing to conduct these transactions subject to the rules of a board of trade that had been designated or registered with the CFTC as a contract market,” the regulator argued.
Violating the Commodity Exchange Act
Moreover, the CFTC noted that the broker, through its employees and agents, has been accepting or soliciting orders for forex and retail commodity transactions, as well as accepting money and cryptos. “The CFTC strongly urges the public to verify a company’s registration with the CFTC before committing funds. A customer should be wary of providing funds to an unregistered entity,” the CFTC warned.
Recently, in a separate case, the CFTC announced that it filed a civil enforcement action against Troy Manson and his company, ZTegrity Inc., for allegedly being involved in a forex-related fraud.
The Commodity Futures Trading Commission (CFTC) announced on Friday that a US Federal Court imposed a ban and a penalty against PaxForex, a forex broker, which operates under the regulation of St. Vincent and the Grenadines. Judge David Hittner of the US District Court for the Southern District of Texas determined that the forex Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real offers illegal leveraged transactions in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw and commodities.
The default judgment orders PaxForex, which has a legal name dubbed 'Laino Group Limited', to pay a civil monetary penalty of $374,864. Furthermore, the platform was imposed with permanent trading, solicitation and registration bans. “The order, entered on June 30, 2021, stems from a CFTC complaint filed on September 24, 2020, that charged PaxForex with engaging in illegal, off-exchange transactions in Ether, Litecoin and Bitcoin, in addition to 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 as required,” the CFTC detailed.
Also, the complaint filed before the court alleges that PaxForex has been involved in 'unlawful' precious metals transactions such as Gold, Silver and cryptos like Bitcoin (BTC) and Ethereum (ETH). “The defendant violated the CEA by failing to conduct these transactions subject to the rules of a board of trade that had been designated or registered with the CFTC as a contract market,” the regulator argued.
Violating the Commodity Exchange Act
Moreover, the CFTC noted that the broker, through its employees and agents, has been accepting or soliciting orders for forex and retail commodity transactions, as well as accepting money and cryptos. “The CFTC strongly urges the public to verify a company’s registration with the CFTC before committing funds. A customer should be wary of providing funds to an unregistered entity,” the CFTC warned.
Recently, in a separate case, the CFTC announced that it filed a civil enforcement action against Troy Manson and his company, ZTegrity Inc., for allegedly being involved in a forex-related fraud.