The CFTC Files Complaint Against Crypto Trading Company

​The US securities regulator CFTC files a complaint against a crypto trading company Paxforex as it is not registered under any regulator, soliciting or accepting business allegedly from US clients.

On the website of Paxforex, it claims that the owners have accumulated experience when working at high position in their current major competitors before. Therefore, as traders and dealers, Paxforex can provide rich experience in forex, stocks, options, and CFDs markets .

CFTC argues in a complaint submitted to Texas Southern District Court, Paxforex broke the law by “Soliciting or accepting orders from non-eligible contract participants (“non-ECPs”), not conducted on or subject to the rules of any Commission-regulated exchange, for the purchase or sale of gold, silver, ethereum (ETH), litecoin (LTC), and bitcoin (BTC) on a leveraged, margined or financed basis that does not result in the actual delivery of the commodities to the customer.”

Besides, Paxforex violates the Section 4d(a)(1) of the Act, 7 U.S.C. § 6d(a)(1) (2018) because it accepts money, securities, or property (or extends credit in the form of bitcoin) without regulation under any regulators.

The regulator asks a U.S.court to compel Paxforex stop acts and practices that violates the law and follow rules made in the law. Besides, CFTC wants the court to prevent Paxforex from participating in any commodity-related activities.

CFTC also wants the court to impose civil penalties and remedial ancillary relief, including trading and registration bans, restitution, rescission, pre-judgment, and post-judgment interest.

PaxForex, founded in 2011, is an online forex broker registered in Saint Vincent and the Grenadines offering its clients low spreads and fast execution.