CFTC Cracks Down Harder on Cryptocurrency Fraud Under Trump

bitcoin cryptocurrency crime fraud jail

The Commodity Futures Trading Commission (CFTC) has bolstered its police actions in the last fiscal year, driven largely by cryptocurrency cases, according to The Wall Street Journal. Under President Trump, the federal derivatives market regulator levied about $900 million in civil penalties in 2018 alone, exceeding the annual amount in five of the eight years of the Obama administration. The amount had declined in 2017, drawing criticism from consumer groups and some Democrats.

Gary DeWaaal, a former CFTC enforcement lawyer who is now special counsel at Katten Munchin Roseman LLP, told the WSJ that the agency knows cryptocurrency fraud is an issue, along with insider trading and manipulation, and has focused on spoofing.

CFTC More Vigorous Than Ever

J. Christopher Giancarlo, the CFTC chairman, extolled the agency’s enforcement activity numbers in a presentation in Minneapolis last week, calling it the most vigorous enforcement in its history.

The CFTC filed five times more spoofing related cases – practices that distort prices – in the past year than any prior year. The agency also won a court judgment that determined cryptocurrencies are commodities, which permits the regulator to police cryptocurrency markets.

Giancarlo said the agency in 2018 levied fines exceeding $10 million in 10 cases, as opposed to an average of three cases per year under the Obama administration.

The agency also reached settlements between $30 million and $90 million concerning interest rate benchmark manipulation with several banks. He compared the 2018 numbers to years 2009 and 2016, not 2017, which was a transition year between the administrations.

Also read: Cryptocurrency is ‘here to stay’: CFTC chairman Giancarlo

CFTC Outpaces SEC Actions

The CFTC actions are expected to contrast with those of the Securities and Exchange Commission (SEC), which has played down its numbers in advance of releasing them later in the year. The two agencies police different segments of the financial markets, with some overlap on derivatives and other areas.

SEC fines dropped by 7.2% in 2017 to around $3.8 billion, marking the lowest since 2013, according to the agency.

Stephanie Avakian, the SEC’s co-director of enforcement, indicated in a September speech the agency’s numbers could fall again in 2018 partly on account of Supreme Court decisions curbing the agency’s ability to reclaim funds for victimized investors. However, she has vowed that the agency will take a more active role in policing illegal initial coin offerings (ICOs), resulting in “more substantial” enforcement actions.

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.

• Join CCN’s crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from Hacked.com? Click here.
• Open Positions at CCN: Full Time and Part Time Journalists Wanted.

Advertisement

CFTC Cracks Down Harder on Cryptocurrency Fraud Under Trump 1
blank
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

blank

E-Crypto News Executive Interviews


blank

bitcoin
Bitcoin (BTC) $ 32,548.00
ethereum
Ethereum (ETH) $ 2,074.16
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 290.32
cardano
Cardano (ADA) $ 1.18
xrp
XRP (XRP) $ 0.598070
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.192609
polkadot
Polkadot (DOT) $ 12.94
binance-usd
Binance USD (BUSD) $ 1.00
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 32,548.00
ethereumEthereum (ETH)
$ 2,074.16
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 445.80
litecoinLitecoin (LTC)
$ 120.53
bitcoinBitcoin (BTC)
27.651,97
ethereumEthereum (ETH)
1.762,15
tetherTether (USDT)
0,849575
bitcoin-cashBitcoin Cash (BCH)
378,74
litecoinLitecoin (LTC)
102,40
bitcoinBitcoin (BTC)
23,914.48
ethereumEthereum (ETH)
1,523.98
tetherTether (USDT)
0.734745
bitcoin-cashBitcoin Cash (BCH)
327.55
litecoinLitecoin (LTC)
88.56

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
blank
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021
Crypto Scams On The Rise As Market Enters Bull Cycle
Crypto Scams On The Rise As Market Enters Bull Cycle
December 22, 2020
Harpreet Singh Sahni perpetrated the Plus Gold Union Coin (PGUC) scam
Sydney Concert Promoter Harpreet Sahni Involved In $50M Crypto PGUC Scam
November 2, 2020
KuCoin hackers steal $150 million
KuCoin Exchange Hacked But Insurance Will Cover The Stolen $150M
September 29, 2020

Blockchain/Cryptocurrency Questions and Answers

Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021
blank
What Is Plethori Platform And How Does It Work?
June 12, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d

bitcoin
Bitcoin (BTC) $ 32,745.00
ethereum
Ethereum (ETH) $ 2,061.40
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 290.94
cardano
Cardano (ADA) $ 1.17
xrp
XRP (XRP) $ 0.596425
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.192266
polkadot
Polkadot (DOT) $ 12.91
binance-usd
Binance USD (BUSD) $ 1.00