The CFTC (Commodity Futures Trading Commission), US commodity files lawsuit against allegedly fraudulent cryptocurrency investment schemes.
Both suits were filed on Thursday in US federal court in New York. Since these are the latest move from the country’s derivatives regulator in getting close over scrutiny activities into cryptocurrency.
The joint statement published on the lawsuit by CFTC and the Securities and Exchange Commission. However, it attributes to SEC Co-Enforcement Directors Stephanie Avakian and Stevan Peikin and CFTC Enforcement Director James McDonald, stated:
“When market participants engage in fraud under the guise of offering digital instruments – whether characterized as virtual currencies, coins, tokens, or the like – the SEC and the CFTC will look beyond form, examine the substance of the activity and prosecute violations of the federal securities and commodities laws. The Divisions of Enforcement for the SEC and CFTC will continue to address violations and bring actions to stop and prevent fraud in the offer and sale of digital instruments”.
Also Read: The US commodity regulator deems how cryptocurrency has been “delivered”
According to the Reuters reports that CFTC files third suit against a cryptocurrency investment scheme. Thus, the details of that case are down at present. The lawsuit from US regulators has been seeking cryptocurrency ecosystem with increased scrutiny.
On Friday, the CFTC and SEC (Securities and Exchange Commission) issue a joint enforcement warning. Thus, it is sustaining to patrol the crypto asset markets and “beyond form examine the substance of the activity. Also, prosecute violations of the federal securities and commodities laws”.
J. Christopher, CFTC Chairman, said at a conference that he had instructed his staff to develop a “heightened review process” for bitcoin futures and other cryptocurrency derivatives.