Daily fraud update: 28th November

Chris Lee

CFTC reveals overall haul from fraud and crime

A major US regulator has announced just how much it has managed to haul in from criminals in the fraud space over the course of 2019.

The Commodity Futures Trading Commission (CFTC) is a regular name in the crypto and forex fraud headlines due to its pursuit of many alleged wrongdoers.

Now, it has announced just how much it has managed to bring in as a result of restitution and other levies.

Overall, its fiscal year – which began on 1st October 2018 and stretched until 30th September 2019.

In total, the regulator managed to bring in over $1.3bn from restitution and a range of other penalty varieties, including disgorgement.

On the whole, this represented a positive move for the agency – and it claims that the amount went up by almost 40% compared to the year before.

Overall, this is the fourth highest amount that the agency has collected in the history of its existence.

Moving away from financial figures, the regulator said that it had managed to bring almost 70 enforcement-type actions against suspected wrongdoers.

Its 69 such cases this year represented just two more than the 67 it bought the year before.

The figures also delved into the world of whistle blower awards, which are somewhat misunderstood in the crypto and forex fraud sphere.

While in 2018, it managed to distribute around $75m, this year it issued just $15m.

Tether and brands face further hit

Major cryptocurrency name Bitfinex and its associated stablecoin brand Tether have been told that they will face a further class action lawsuit in the US.

Bitfinex, which is an exchange platform, told its users that the move had been levied against it and Tether in the US District Court for the Western District of Washington.

Bitfinex stands accused of leading investors astray by “comingling” the brands of the two firms – while at the same time failing to declare how co-operative they were.

They are also accused of manipulating market demand, a claim made in a previous lawsuit filed last month in the District Court for the Southern District of New York.

In a strongly-worded rebuttal statement, Bitfinex and Tether described those working on the legal case against them as “mercenary”.

“As we predicted last month, mercenary lawyers continue to try to use Bitfinex and Tether to obtain a payday”, the statement read.

“To be clear, there will be no nuisance settlements or settlements of any kind reached. Instead, all claims raised across both actions will be vigorously contested and ultimately disposed of in due course. Once they are, Bitfinex and Tether will fully evaluate their legal options against those bringing and promoting the baseless claims.”

“These absurd and groundless accusations are an attack on the growth, success and innovation of the entire digital token ecosystem, in which Bitfinex is proud to play a critical role”, they added.


Chris Lee

Latest news

AUD/USD Pair Dips 0.45% in Markets, COVID Panic Grips
The US dollar continued a week of surges in lots of its key pairs after the coronavirus pandemic placed itself firmly back on the agenda. Read more
EUR/GBP Eyeing 0.9282 Level on the Forex Price Charts
The pair containing the single European currency and the British pound has been closely watched in recent weeks. Read more

Safest Forest Brokers 2020

Broker Info Best In Customer Satisfaction Score
#1 ForexTime LogoYour capital is at risk Founded: 2012 Global CFD and FX broker
Number One Broker
Best FOREX BROKER Visit broker
5
#2 Your capital is at risk Founded: 2012 Global Forex Broker
Number One Broker
Best Trading App Visit broker
5
#3 Forex Broker Pepperstone LogoYour capital is at risk Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#4 Your capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#5 BlackBull MarketsYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8

    Forex Fraud Certified Brokers

    XM Logo
    Exness Small Logo
    Pepperstone
    LegacyFX Small Logo
    VantageFX Small Logo
    Oinvest Small Logo
    OctaFX Logo
    BlackBull Markets Small Logo
    HYCM Logo
    IQ Option Logo
    City Index Logo
    Oanda Small Logo
    Forex.com Logo
    FXTM Logo
    Plus500 Small Logo
    ATFX Logo
    skilling logo