The U.S. Commodity Futures Trading Commission (CFTC) has recently charged the overseas trading company Laino Group Ltd., also called PaxForex. According to the CFTC, the firm was engaged in illegal retail commodity transactions which included Bitcoin, Ether, and Litecoin.
CFTC has filed a civil enforcement action against the firm in the U.S. District Court. It was also revealed that this firm is not even registered as a Futures Commission Merchant (FCM). James McDonald, Division of Enforcement Director, has stated that the step by the commission is showing its commitment to ensuring whether the firms offering leveraged, retail transactions are registered with the commission or not.
CFTC Urged Public to Verify Registration Before Committing Funds
It is revealed that PaxForex has been engaged in illegal transactions since March 2018. It is revealed that the firm has acted as an FCM as it accepted the orders for retail commodity transactions. Along with this, it has also acted as the counterparty for these transactions. Even though it was acting as an FCM, it still failed to get registered with CFTC.
CFTC is now seeking the disgorgement of ill-gotten gains along with civil penalties trading bans, a permanent injunction against further violations, and many other terms and conditions.
The commission has also urged the public to properly verify whether the firm is registered with CFTC or not before committing their funds. If found unregistered, the customers should definitely avoid providing funds to such entities. Along with this, it has also provided the NFA BASIC link to find out the registration status of any company.
The Commission Thanked U.S. Authorities for Assistance
CFTC has expressed their thanks to the U.S. authorities which include the Attorney’s Office for the Southern District of Texas and the Federal Bureau of Investigation for the assistance that they have provided in this matter.