CFTC Commissioner: There’s Just No Way to Police All Crypto Fraud Cases

Christy Goldsmith Romero, a commissioner at the Commodity Futures Trading Commission (CFTC), has said it is impossible for the agency to police all instances of fraud due to the vast amount of alleged scams in the crypto space.

Romero acknowledged this challenge in law enforcement at a white-collar crime conference held at the New York City Bar Association on Tuesday. However, she emphasized the agency’s commitment to taking action by actively pursuing several significant cases. In her words:

There’s just a lot of fraud in the space. There’s just no way we can police all the fraud, but we’ve got to do something.

Furthermore, Romero revealed that crypto-related matters constitute approximately 20% of the CFTC’s case portfolio, including recent developments involving two prominent exchanges, Binance and FTX.

In March, the CFTC filed a lawsuit against Binance and its founder and CEO, Changpeng Zhao, alleging the operation of a sham compliance program. However, CEO Zhao has refuted the claims, stating that the complaint fails to present a complete picture of the facts.

Additionally, the CFTC’s case against FTX, a now-bankrupt exchange, accuses founder Sam Bankman-Fried of causing the loss of over $8 billion in customer deposits, with Bankman-Fried pleading guilty to the charges filed by the U.S. Department of Justice.

Notably, Romero denied the existence of a “turf war” between the CFTC and the Securities and Exchange Commission (SEC) regarding crypto regulation. She acknowledged both agencies are navigating the complexities of regulating a rapidly evolving sector.

Furthermore, the commissioner cautioned crypto companies against assuming that the CFTC would provide a friendlier regulatory environment compared to the SEC.

Comments

Post a Comment

Popular posts from this blog

Footwear conglomerate Puma launches 3D Web3 experience

The experience is designed for everyone, but Puma Pass holders gain access to exclusive perks. On June 13, German footwear conglomerate Puma launched its 3D metaverse experience , Black Station. As told by developers, Black Station is an “experiential home” for product drops built to provide “unbridled access” for Puma Pass nonfungible token (NFT) holders. The firm says that the experience is for everyone to explore, but only those possessing RB tokens airdropped to Puma Pass holders can purchase a digital "Rulebreaker” sneaker and claim two digital wearables. At the time of publication, RB tokens currently have a price tag of 0.0125 Ether (ETH). Developers wrote: “If you do not own an RB token there is still so much to explore. Unkai, our city in the clouds, and Unter, our exhilarating club below, both are filled with mysteries to explore and collect." Holders of the RB token can burn it from June 13-20 on Black Station, granting their parent wallet access to various pro...
Read more

Massive victory for Bitcoin bulls if this critical level holds

Image
Despite the current slowdown, Bitcoin (BTC) has recently crossed the $35,000 level for the second time in a week and remains in the upper $34,700’s, with nearly 80% of its holders presently in profit and the cryptocurrency sector waiting with bated breath to see what happens next. As it happens, over 78% of Bitcoin holders are making money at the flagship decentralized finance (DeFi) asset’s current price, as opposed to 17% in loss, according to the information shared by the blockchain and cryptocurrency analytics platform IntoTheBlock in an X post published on November 6. Bitcoin holders in profit at current price. Source: IntoTheBlock Furthermore, 1.94 million addresses have previously bought 778,859 BTC at a minimum price of $34,111.17 and a maximum price of $35,122.37, which makes the average of $34,650 a critical support level that the maiden crypto needs to hold for bulls to have “a massive victory ,” as the analysts observed. Bitcoin holders in/out of the money around p...
Read more

Binance and CZ file motion to dismiss CFTC’s lawsuit

Image
Binance, its CEO Changpeng Zhao (CZ), and the company’s former compliance chief Samuel Lim seek to dismiss the complaint filed by the US CFTC. On March 27, 2023, the Commodity Futures Trading Commission took legal action against Binance for violating the Commodity Exchange Act and offering futures trades without registering as a futures commission merchant (FCM). You might also like: US CFTC takes legal action against Binance, crypto markets fall Moreover, according to the motion , the defendants seek to file two separate motion s to dismiss CFTC’s lawsuit . Binance and CZ file a joint motion while Lim goes independent. The defendants requested the court to allow them to respond with a 50-page motion while currently limited to only 15 pages. Per the document, the defendants’ response against the CFTC needs to be submitted by July 27 to the US District Court for the Northern District of Illinois. Last month, the US Securities and Exchange Commission (SEC) sued Binan...
Read more