An offshore crypto trading platform has been accused of violating U.S. derivatives rules by the U.S. Commodity Futures Trading Commission (CFTC).
The CFTC filed a civil enforcement action against Laino Group Ltd. (which operates under the name PaxForex), a company based in St. Vincent and the Grenadines, alleging that it illegally offered trading in various crypto assets, as well as gold and silver.
The regulator alleged the company engaged in unlawful retail commodity transactions and failed to register as a futures commission merchant.
The allegations have not been proven.
“This action shows the CFTC’s continued commitment to ensuring that entities offering leveraged, retail transactions within our jurisdiction—including those involving digital assets—register with the CFTC,” said James McDonald, director of the CFTC’s enforcement division.
The CFTC is seeking disgorgement of ill-gotten gains, monetary penalties, restitution, and permanent registration and trading bans.