On September 17, 2015, the CFTC issued an Order filing and settling charges against Coinflip, Inc., a San Francisco based company, and its chief executive officer, Francisco Riordan, for conducting activity related to commodity options transactions in violation of the Commodity Exchange Act rules and CFTC Regulations. In the Order, the CFTC found for the first time that Bitcoin and other virtual currencies are properly defined as commodities covered by the CEA. The Order found that Coinflip and Riordan operated a facility for the trading or processing of commodity options without complying with the CEA or CFTC Regulations. The Order requires Coinflip and Riordan to cease and desist from further violations of the CEA and CFTC Regulations, as charged, and to comply with specified undertakings.

The press release is available at: http://www.cftc.gov/PressRoom/PressReleases/pr7231-15