A Swiss company settled separate CFTC and SEC charges (see here and here) for (i) acting as a futures commission merchant ("FCM") without registering with the agency and (ii) dealing in unregistered security-based swaps.
According to the CFTC, the company promised digital currency traders "mainstream market access." The CFTC found that the company operated by accepting (i) orders to buy or sell commodity futures from U.S. customers through its website and electronic trading platform and (ii) bitcoin in order to margin customers' trades, even though it was not a CFTC-registered FCM.
To settle the charges, the company agreed to (i) cease and desist from further violating CFTC regulation, (ii) comply with the conditions and undertakings outlined in the Offer, and (iii) pay a civil monetary penalty of $100,000. The CFTC acknowledged the company's cooperation during the investigation by imposing a lowered monetary penalty.
According to the SEC, the company (i) offered and sold to U.S. investors, unregistered security-based swaps and (ii) failed to conduct the transaction with retail investors on a registered national exchange.
To settle the SEC charges, the company agreed to (i) cease and desist from further violating SEC regulations and (ii) pay a total monetary penalty of $131,952. The SEC acknowledged the company's cooperation during the investigation by imposing a lowered monetary penalty.