The CFTC aims to trick an unregistered platform into paying US investors back their money after investing in crypto futures.
On Monday, the Commodity Futures Trading Commission sued the Laino Group for advising US investors to trade futures on commodities such as Ether, Litecoin and Bitcoin.
The company had not previously registered with the Commission
According to the CFTC’s complaint, the St. Vincent-registered Laino Group, which operates as PaxForex, used a network of US subsidiaries to attract US retail investors. In doing so, the Laino Group violated the Goods Trade Act.
The CFTC did not specifically say what activities the Laino Group was involved in. The Commission’s request for discharge indicates that it does not know how much the trading platform has earned without registration.
The CFTC’s lawsuit not only demands full repayment of all monies, but also:
An order that the defendant and any successor to the court shall account for all of their assets and liabilities. He must also list all the funds that he has received from and paid to customers.
The definition of the responsibility limit is a specialty here. The CFTC has repeatedly referred to Bitcoin as a commodity in recent years. Ether and Litecoin are on the same list as Bitcoin and traditional commodities like gold and silver. This suggests that the Commission is treating these others as commodities as well, as CFTC chair Heath Tarbert said last year.
The question of which cryptocurrencies should fall under the jurisdiction of the CFTC was addressed in two draft laws that were presented to the House of Representatives last week.