United States regulatory agency, CFTC [Commodity Futures Trading Commission], has charged 20 entities, among which some were cryptocurrency traders & exchanges, for creating false claims of getting CFTC registration and NFA [National Futures Association] membership. These are mandatory registrations that permit exchanges to offer services associated with trading in digital assets, derivatives, and forex within the United States.
Within 20 entities, 10 firms allegedly claimed on their websites that they were registered with the CFTC. According to the report, these so-called exchanges had never been registered with the CFTC or the NFA in any capacity.
The report referred to the businesses involved which include Bitfx24option.com – that claimed to trade & exchange Bitcoin, Fidelityfxtrade.com – crypto-forex & investment platform, and Granttradefx.com.
Other entities mentioned within the report were: iMarketsserviceFX.com, Toptradecapitalfx.com, Westtechtrade.com, Westintrade.com, Yobcryptotrade24.com, Zenithoptionstrade.net, and Zenithtradermarkets.com. Most of these companies also claimed to be situated within Walsall, in the UK.
According to the Division of Enforcement Director, James McDonald:
“Today’s actions are the newest examples of the CFTC’s efforts to aggressively uproot fraud & bad actors involved within the markets. As these actions show, the CFTC will act decisively to stop false claims of CFTC or NFA registration.”
The CFTC urged users to verify a company’s registration with the Commission before committing funds. If unregistered, people should be wary of transferring funds to that entity. A company’s registration status is often found using the NFA BASIC [National Futures Association Database].