PaxForex Banned from Permanent Trading by US Federal Court

The Commodity Futures Trading Commission (CFTC) stated on Friday that a US Federal Court had issued a ban and a penalty on PaxForex, a forex broker regulated by St. Vincent and the Grenadines. The trading platform facilitates illegal leveraged trades in cryptocurrencies and commodities, according to Judge David Hittner of the US District Court for the Southern District of Texas.

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PaxForex, whose corporate name is "Laino Group Limited," must pay a civil monetary penalty of $374,864 under the default decision. Permanent trading, soliciting, and registration bans were also enforced on the platform. The order was entered on June 30 2021, based on a complaint filed with CFTC dating back to last September, in which PaxForex was accused of engagement 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, according to CFTC.

PaxForex is also accused of engaging in "illegal" precious metals trades, including gold, silver, and cryptos like Bitcoin and Ethereum, according to the complaint filed with the court. "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," explained the regulator.

Furthermore, the CFTC stated that the broker has been accepting or soliciting orders for forex and retail commodity trades, as well as accepting money and cryptos, through its employees and agents.

"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.