The Tera Exchange was charged by the Commodity Futures Trading Commission of orchestrating two offsetting non-deliverable forward contracts based on the relative value of the US dollar and Bitcoin between two of its members in order to give the impression that bona fide trading had occurred (when it had not) in violation of its obligation to prohibit wash trading and pre-arranged trading. Tera’s obligations arose under core principles it is subject to as a CFTC provisionally registered swap execution facility, claimed the Commission. The transactions occurred on October 8, 2014. According to the CFTC, the trades were pre-arranged “with the understanding of the parties [that they] would execute a round-trip trade with the same price in, same price out (i.e., with no P/L consequences).” Following the transactions, on October 9, 2014, Tera issued a press release announcing “the first Bitcoin derivative transaction to be executed on a regulated exchange.” Also on the same day, October 9, the then president of Tera publicly disclosed the first transaction during a meeting of the CFTC’s Global Markets Advisory Committee, said the CFTC. To resolve this matter, Tera agreed to cease and desist from further violations. A fine, however, was not assessed as part of the resolution of the matter. CFTC Commissioner Sharon Bowen issued a rare dissent to this resolution. She said, “I believe fictitious trading deserves a penalty. The Exchange facilitated wash trading and prearranged trading… I fundamentally disagree with the notion that [Tera] deserve[s] no penalty.”