CFTC commences settlement discussions with head of Global FX Club

Maria Nikolova

The start of settlement talks with the CFTC is announced shortly after Michael S. Wright pled guilty in a criminal case against him.

The United States Commodity Futures Trading Commission (CFTC) has informed the New York Southern District Court that it had reached agreement to start settlement discussions with Michael S. Wright, head of Wright Time Capital Group LLC, doing business as Global FX Club.

The start of these discussions is announced shortly after Mr Wright pled guilty in the criminal matter to Count One of the Indictment against him (commodities fraud) pursuant to a written plea agreement with the United States government. Mr Wright was continued on bail and sentencing was scheduled for January 25, 2018.

The CFTC and Mr Wright have request to provide a further status update to the Court by December 6, 2017, and the Court has approved their request.

Count 1 of the Indictment charges the defendant with commodities fraud. According to the allegations, from at least January 2011 to June 2017, Mr Wright, while acting as a principal of Wright Time Capital Group LLC, aka Global FX Club, falsely represented to investors that their money was going to be used to trade in off-exchange foreign currency transactions, and falsely represented to investors the trading performance of his company. In addition, he is accused of having misappropriated a large portion of investor funds for his personal use and of having utilized investor funds in a Ponzi-like manner to make payments to other investors.

The criminal case against Mr Wright has led to the staying of the civil action against him brought by the Commodity Futures Trading Commission (CFTC) in June. The CFTC charged Mr Wright and his companies with fraud, misappropriation, and issuing false account statements in connection with a pooled investment in Forex trading. The CFTC Complaint stated that from approximately August 2010 through the present, Defendants engaged in a fraudulent scheme to solicit more than $400,000 from at least 10 members of the public, promising to use pool participant funds for FX trading.

The civil action against Mr Wright is captioned U.S. Commodity Futures Trading Commission v. Wright et al (1:17-cv-04722).

Read this next

Inside View

Industry Leaders Share Insights on Framing Crypto Payments into FX Brokerage Business

While the allure of crypto payments is strong, caution is essential. The potential benefits in terms of speed, lower fees, and blockchain efficiency need to be weighed against the risks associated with cryptocurrency volatility. 

Institutional FX

FXSpotStream volumes hit 14-month high in November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2023, which moved higher on a monthly basis.

Digital Assets

Circle denies ties with Palestinian groups, TRON founder

Stablecoin issuer Circle has denied allegations that it facilitates funding for terrorist organizations.

Retail FX

CySEC hits operator of Titanedge, TradeEU with €90,000 fine

The Cyprus Securities and Exchange Commission (CySEC) announced that it has imposed a fine of €90,000 on Titanedge Securities Ltd due to shortcomings in their regulatory obligations.

Institutional FX

Cboe FX volumes retreats slightly in November 2023

Cboe’s institutional spot FX platform today announced its trading volume for the month ending November 2023, which took a step back after a strong rebound in October.

Institutional FX

Alpha Group seals Cobase majority acquisition

Foreign exchange service provider Alpha Group International plc (AIM: ALPH) has finalized its acquisition of Financial Transaction Services, operating as Cobase.

Digital Assets

TMNG Tokens Successfully Listed on MEXC Crypto Exchange

TMN Global proudly announces the successful listing of its native TMNG token on the MEXC crypto exchange, effective December 1st, 2023. This strategic partnership marks a significant milestone for TMN Global in the crypto space.

Institutional FX

Marex completes acquisition of TD Cowen’s PB business

London-headquartered commodities broker Marex has completed the acquisition of TD Cowen’s prime brokerage and outsourced trading business, which will be integrated into Marex’s capital market division. This division was established following the acquisition of ED&F Man Capital Markets in 2022.

Digital Assets

Talos introduces decentralized liquidity and onchain settlement with Uniswap and Fireblocks

“At the cornerstone of the DeFi ecosystem, Uniswap has the breadth of assets and depth of liquidity that institutional traders need. And to have this partnership powered by Fireblocks, a digital assets infrastructure provider trusted by some of the most renowned institutions, is very fitting.”