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Judge Bans PaxForex From US for Offering Unregistered, Leveraged Crypto Trades
The St. Vincent-based trading shop did not show up in court to defend itself against CFTC allegations.
By Danny Nelson
Updated Sep 14, 2021, 1:23 p.m. Published Jul 9, 2021, 10:41 p.m.
A federal judge banned trading platform PaxForex from operating in the U.S. late last month, writing in a default judgement that the futures shop, which in 2018 was host to unlicensed leveraged crypto products, failed to defend itself in court.
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Laino Group Ltd., the St. Vincent-based company that is behind PaxForex, must pay a $374,864 fine and is permanently barred from trading, soliciting or registering in the U.S., David Hittner, a federal judge in Texas’ Southern District, ordered
Hittner ruled that PaxForex’ leveraged bitcoin, ether and litecoin trading operation violated the Commodity Exchange Act because it failed to register with the Commodity Futures Trading Commission, the nation's top derivatives regulator.
Federal agents seized the company’s domain name last September in coordination with the CFTC, which then filed suit.
“The CFTC strongly urges the public to verify a company’s registration with the CFTC before committing funds,” the agency said in a statement.
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