CFTC secures default order against Tallinex as broker does not reply to complaint

Maria Nikolova

Tallinex has failed to appear or otherwise defend, and the time allowed by law for answering has expired.

The United States Commodity Futures Trading Commission (CFTC) has secured a default order against retail FX broker Tallinex which has failed to respond to the complaint filed against it at the Utah District Court. As FinanceFeeds reported, the CFTC filed a Motion for a Clerk’s Order of default against the broker last week. On Monday, April 23, 2018, the order was granted.

Let’s recall that the CFTC managed to serve the complaint and the summons to Tallinex on August 15, 2017 at the company’s address in Saint Vincent and the Grenadines. The defendant, however, has failed to appear or otherwise defend, and the time allowed by law for answering has expired, the Court Clerk said on Monday.

The entry of a Clerk’s Order of Default against an entity is typically a precursor to the entry of a default judgment against the defendant by the Court. So, it is highly likely that the next step by the CFTC in this case would be to ask the Court to to issue a default judgement against Tallinex.

The CFTC complaint alleges that, from at least September 2012 to at least September 2016, Tallinex and its introducing broker General Trader Fulfillment (GTF) solicited or accepted orders from retail FX customers located in the United States, without having the necessary registration. The regulator is seeking (inter alia) a Court order requiring Defendants to pay civil monetary penalties in amounts the greater of: (i) $170,472 for each violation of the Act and Regulations; (ii) triple their monetary gain.

GTF has made its stance regarding the CFTC allegations clear by denying that it was Tallinex’s introducing broker. GTF has admitted it has never been registered with the CFTC, but denied that it was required to be registered with the regulator. GTF also denied that it had received commission on revenue generated by trading activity from Tallinex. In addition, GTF denied that it solicited US customers to open forex trading accounts at Tallinex.

In December last year, the Court agreed to grant a time extension requested by the CFTC in this case, so that the regulator may pursue settlement talks with GTF.

The case is captioned Commodity Futures Trading Commission v. Tallinex et al (2:17-cv-00483).

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<