The United States Commodity Futures Trading Commission (CFTC) is having trouble locating Benjamin Reynolds, who is allegedly responsible for a cryptocurrency Ponzi scheme worth over $140 million. Financial news outlet FinanceFeeds reported on Jan. 6 that the CFTC has filed a motion with the New York Southern District Court. More precisely, the regulator filed for the service of process on Reynolds by publication on The Daily Telegraph and extending for sixty days the time limit by which the service must be effected on him and his firm. A major Bitcoin ponzi scheme In mid-June, the CFTC launched action against the …

The United States Bitcoin (BTC) derivatives market witnessed a slew of developments in 2019 as “old players” set trading volume records and “new players” introduced novel market products. After months of regulatory maneuvering, Bakkt finally launched and has gone on to post record Bitcoin futures trading volumes. Several platforms have also obtained Swap Execution Facility licenses from the U.S. Commodity Futures Trading Commission as the crypto derivatives arena in the country expanded throughout 2019. One of the 19 CFTC-licensed platforms, Tassat, said the approval is a preliminary step to the company listing physically settled Bitcoin derivatives for institutional clients. Overall, …

United States-based cryptocurrency brokerage BitOoda has secured $7 million funding from major investors including former senior investment exec at JPMorgan. Founded in 2017, BitOoda positions itself as a digital asset financial services platform that combines digital finance and applied science. Investors are former execs from British Petroleum, JPMorgan and S&P Global Platts According to an official announcement on Dec. 23, BitOoda’s new seed round featured founder of international energy analytics firm PIRA Energy Gary Ross, who is also a former head of global oil analytics and chief energy economist at S&P Global Platts. Other investors included Roy Salame, former managing …

Security token platform TokenSoft has hired Alex C. Levine, formerly of several key United States financial regulators, to handle compliance for all security offerings. In a Dec. 17 press release, the San Francisco-based token issuance platform announced the hiring of Levine as its new chief legal officer of TokenSoft and president of DTAC, TokenSoft's affiliate transfer agent. Mason Borda, CEO of TokenSoft, said that Levine will help the firm to ensure that its customers receive the “best-in-class” compliance tooling for security token issuances, adding: "Alex's regulatory and blockchain experience will ensure our transfer agent offering can meet the complex compliance …

A United States court has granted regulators a preliminary injunction against an alleged Bitcoin (BTC) Ponzi scheme which reportedly defrauded investors of $11 million. In a filing with the United States District Court in Nevada dated Dec. 6, Judge Jennifer A. Dorsey ruled in favor of the Commodity Futures Trading Commission (CFTC) and against Circle Society, along with its operator, David Saffron. CFTC wins injunction against CIrcle Society “...I find that this is a proper case for granting a preliminary injunction and other equitable relief to preserve the status quo, protect customers from further loss and damage, and enable the …

A panel of senior financial regulators in the United States has warned the public about the purported risks of stablecoins and cryptocurrencies. A report issued on Dec. 4 by the Financial Stability Oversight Council (FSOC) highlighted potential problems resulting from stablecoins gaining wider recognition. The FSOC was set up in 2008 to combat risks to the financial sector after the financial crisis. The panel is headed by United States Secretary of the Treasury Steven Mnuchin. Its voting members include Jay Clayton, the chairman of the Securities and Exchange Commission (SEC), as well as Heath Tarbert, who recently took over as …

Former United States Commodity Futures Trading Commission (CFTC) chairman Chris Giancarlo was hired as senior counsel at the New York-based law firm Willkie Farr & Gallagher. Digitize the dollar and take power away from central banks On Dec. 2, Reuters reported that Giancarlo in his new role at Willkie Farr & Gallagher will continue to focus on digital innovation in areas such as cryptocurrencies and blockchain. Giancarlo, also known as “Crypto Dad,” commented on his new role: “I will divide my time between assisting Willkie clients in their worldwide commercial ventures and focusing on key issues of public interest...Among other …

The United States Commodity Futures Trading Commission (CFTC) has obtained over $1.3 billion in administrative penalties in the fiscal year 2019, which included funds collected from cryptocurrency operators. According to the CFTC’s annual report for the 2019 financial year, the regulator obtained monetary relief in its enforcement actions — including in the form of civil monetary penalties, disgorgement, and restitution — totaling $1,321,046,710. The figure is 39% higher than that of the previous fiscal year. Notable crypto fraud cases While the CFTC did not specify the exact amount of regulatory penalties obtained from digital currency-related companies, it pointed out several …

The chairman of the United States Commodity Futures Trading Commission (CFTC) has called for “principles-based regulation” for cryptocurrencies. Heath Tarbert, who assumed his post following former Chairman J. Christopher Giancarlo in July 2019, stated that taking such an approach in regulating digital assets would allow a period of development and observation before it may be appropriate to adopt more targeted rules. Tarbert delivered his remarks on crypto regulation in an op-ed published on the CFTC website Nov. 19. In the statement, Tarbert emphasized that the term “principles-based regulation” does not imply a light-touch approach or deregulation, stating that it is …

The New York Southern District Court has ruled in favor of the United States government to intervene in a civil case against Jon Barry Thompson, who is alleged of a $7 million Bitcoin (BTC)-related fraud. With Judge Loretta A. Preska’s ruling on Nov. 19, the U.S. government — in this case, represented by the Commodity Futures Trading Commission (CFTC) — now has the right to intervene in civil proceedings that are running parallel to a criminal multimillion Bitcoin scam case. Thompson, a resident of Easton, Pennsylvania, is charged with “knowingly or recklessly making false representations to customers in connection with …

New York-based financial technology firm Tassat — formerly known as trueDigital — has succeeded in overcoming the first hurdle in its bid to launch a fully-regulated crypto derivatives exchange. According to an announcement from the United States Commodity Futures Trading Commission (CFTC) on Nov. 7, the regulator has approved the transfer of a swap execution facility (SEF) registration from fellow New York-based financial services firm trueEX to Tassat. Tassat had first reached the agreement in principle to acquire — subject to CFTC approval — trueEx’s SEF registration back in July of this year. The company is now waiting for news …

Mainstream finance and cryptocurrency are becoming more closely intertwined with each passing day. Just over a year ago, the idea of centralized financial behemoths trialing blockchain or crypto solutions would have been unthinkable. Currently, cryptocurrency is traded like never before. In just the last few weeks, major players have launched both Bitcoin options and futures platforms, making cryptocurrency accessible to a whole new range of investors. For crypto enthusiasts, each instance of wider integration with mainstream finance is a cause for celebration. For cryptocurrency’s many detractors, these new ways of trading are simply opening the door to a rogue sector …