Tagged: CFTC

CFTC Opens Inquiry into Binance, One of the World’s Largest Cryptocurrency Exchanges

Matt Stankiewicz, Managing Counsel at The Volkov Law Group, joins us for a post looking into the CFTC’s recent inquiry into Binance. Matt can be contacted at MStankiewicz@volkovlaw.com. On Friday March 12, Bloomberg News reported that the Commodity Futures Trading Commission (“CFTC”) has opened an inquiry into Binance Holdings Ltd. (“Binance”) to investigate allegations that the exchange allowed US citizens to trade in cryptocurrency derivatives,...

BitMEX Trading Exchange Earns Criminal and Civil Prosecution for AML Violations

We all have been following the rapid growth of cryptocurrency and the creation of lucrative trading platforms.  Cryptocurrency has earned the scrutiny of regulators and criminal prosecutors – not for run-of-the-mill fraud schemes, but for compliance with applicable anti-money laundering laws and regulations. Late in 2020, the Justice Department and the Commodities Futures Trade Commission (“CFTC”) slammed BitMEx and its principals with a coordinated criminal...

DOJ and CFTC Settle Spoofing Case with Scotiabank for $127.4 Million

In the last five years, the Justice Department and the Commodities Futures Trading Commission have aggressively prosecuted “spoofing” cases.  While the government’s record in these cases has been mixed, the government has been successful in securing guilty pleas and winning high-profile trials against traders. Prosecutors have continued to push spoofing prosecutions to root out the conduct.  “Spoofing” refers to traders who engage in bogus conduct...

Former CFTC Chairman Calls to Strengthen Cryptocurrency Regulations

Matt Stankiewicz rejoins us for another posting on cryptocurrency compliance. Matt can be reached at mstankiewicz@volkovlaw.com. Just this month, former CFTC Chairman Timothy G. Massad released a report through the Brookings Institution entitled “It’s Time to Strengthen the Regulation of Crypto-Assets.”  Interestingly enough, Mr. Massad was at the helm of the CFTC during the financial crisis.  He even notes that he “share[s] the desire to...

Who’s on First, What’s on Second – Who is Regulating ICOs, Cryptocurrencies and Exchange Platforms?

Abbott and Costello’s famous routine — Who’s on First, What’s on Second — puts cryptocurrency regulation and enforcement risks in perspective.  Here is the classic comedy routine. When new technologies appear on the scene, Washington regulation is sure to follow.  The exact configuration can take years to sort out, especially when it comes to financial products, given the labyrinth of regulatory bodies seeking to lay...