Today, fintech is driving innovation in financial markets across the globe. New technologies are wide-ranging in scope, from cloud computing and algorithmic trading to distributed ledgers to artificial intelligence and machine learning to network cartography, and many others. These technologies have the potential for significant or even transformational impact on CFTC-regulated markets and the agency itself. One of the most recent marketplace developments driving a lot of interest is the rise in prominence of virtual currencies, specifically bitcoin. Below are resources for market participants and customers on virtual currency and the CFTC's role in oversight of this emerging innovation.

Washington, D.C. — The Commodity Futures Trading Commission today announced the filing of a multi-million dollar fraud action in the U.S. District Court for the Southern District of Florida, charging three individuals and three companies with fraudulently soliciting tens of millions of customers and prospective customers to open and fund off-exchange binary options and digital asset trading accounts. These accounts traded foreign exchange currency pairs, metals, and digital assets through websites operated by unregistered binary options and digital asset brokers. 

The complaint charges defendants Daniel Fingerhut of Miami, Florida, and three companies that he worked with, Digital Platinum, Inc. (DPI), a Florida corporation, Digital Platinum, Ltd. (DPL), an Israeli company, and Huf Mediya Ltd. (Huf) a Bulgarian company, as well as the control persons of all three entities, Tal Valariola and Itay Barak of Israel. According to the complaint, beginning in at least...

Washington, D.C. — The Commodity Futures Trading Commission today issued an order filing and settling charges against respondents Mehran Khorrami, from New York, and his New York firm, Cayley Investment Management, LLC (CIM), for engaging in wash sales and non-competitive transactions. The order requires Khorrami and CIM to pay a civil monetary penalty of $150,000.

According to the order, Khorrami, on behalf of CIM, engaged in multiple wash sales and non-competitive transactions for accounts held by a client of CIM. These transactions involved foreign currency, crude oil, and gold futures contracts. Specifically, on February 8, 2018, Khorrami placed simultaneous buy and sell orders in six different CME futures contracts. Initially, the orders were at different bid and offer prices, but after being unable to fill the orders, Khorrami repeatedly modified the orders until the bid and offer prices matched. This resulted in a series of pre-arranged cross trades in contracts...

The mission of the Commodity Futures Trading Commission’s (“CFTC”) is to promote the integrity, resilience, and vibrancy of the U.S. derivatives markets through sound regulation. As part of this mission, the CFTC regulates a variety of individuals and organizations. These include futures commission merchants, commodity pool operators, commodity trading advisors, retail foreign exchange dealers, introducing brokers, designated contract markets, foreign boards of trade, swap dealers, and other entities and individuals. To promote market integrity, the CFTC surveils the derivatives markets for various abuses, and holds wrongdoers accountable.

Increasingly, fraudsters use a variety of social engineering, fake profiling, and manipulative techniques to ensnare their victims. Fraud tactics regularly employ common keywords and phrases. With this information, there is an opportunity to utilize modern technology as a tool to augment traditional, manual efforts and to identify bad...

The best way to protect yourself against fraud is to stay informed. Be aware of the tactics scammers use to lure you into making questionable investing decisions. Watch for the following in the sales pitches:

The Commodity Futures Trading Commission advises the public that unregistered brokers selling binary options, foreign exchange (forex) programs, and cryptocurrencies are targeting people who lost their jobs due to the coronavirus outbreak. The scams are primarily conducted on social media and via messaging apps. The fraudsters convince their victims they can earn unrealistically high profits from home, but later force the victims to pay excessive “fees” and “taxes” to get their supposed earnings. The profits are not real and the fraudsters disappear when the victims stop paying.    

The Commodity Futures Trading Commission advises the public that unregistered brokers selling binary options, foreign exchange (forex) programs, and cryptocurrencies are targeting people who lost their jobs due to the coronavirus outbreak. The scams are primarily conducted on social media and via messaging apps. The fraudsters convince their victims they can earn unrealistically high profits from home, but later force the victims to pay excessive “fees” and “taxes” to get their supposed earnings. The profits are not real and the fraudsters disappear when the victims stop paying.    

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The Commodity Futures Trading Commission advises the public that unregistered brokers selling binary options, foreign exchange (forex) programs, and cryptocurrencies are targeting people who lost their jobs due to the coronavirus outbreak. The scams are primarily conducted on social media and via messaging apps. The fraudsters convince their victims they can earn unrealistically high profits from home, but later force the victims to pay excessive “fees” and “taxes” to get their supposed earnings. The profits are not real and the fraudsters disappear when the victims stop paying.