CFTC starts legal action against retail FX broker Tallinex

Maria Nikolova

CFTC seeks permanent injunction, civil monetary penalties and other forms of relief for defendants.

Offering retail Forex services to US clients without having the necessary registration with the US regulators is a law violation and a broker may be prosecuted for it. The United States Commodity Futures Trading Commission (CFTC) has just demonstrated again that it will go after offenders over such law breaches.

On May 30, 2017, the CFTC filed a case against retail Forex broker Tallinex at the Utah District Court. The case captioned Commodity Futures Trading Commission v. Tallinex et al (2:17-cv-00483) is assigned to Judge David Nuffer. The official cause for the legal action is alleged violation of Federal Commodity Exchange Regulations.

The CFTC is seeking permanent injunction, civil monetary penalties and other forms of relief for defendants.

According to Law360, the US regulator alleges that Tallinex took at least $1.5 million from US investors by conducting retail foreign currency trades without having the necessary registration.

The CFTC says that from September 2012 and to at least September 2016, Tallinex solicited and accepted Forex orders from customers in the United States without registering as a retail foreign exchange dealer with the Commission. Thus, the broker is alleged of having violated the Commodity Exchange Act and agency rules.

Tallinex’s website displays a disclaimer saying that the company does not provide retail Forex services to US residents. The contact form shows the broker is registered in St Vincent and the Grenadines.

Under the Commodity Exchange Act (CEA) and US CFTC regulations, since October 18, 2010, an entity that solicits or accepts orders from US customers in connection with forex transactions must register with the CFTC and comply with rules and regulations, including (inter alia) minimum capital requirements and record-keeping. Putting it otherwise, even an overseas company that wants to target US residents should have the necessary registration with US regulators.

The CFTC has demonstrated several times how it can punish violators of this rule. For example, in February 2013, the CFTC filed a complaint in Court against Halifax Investment Services of Sydney, Australia for soliciting and accepting FX orders from US customers without registering with the CFTC as required.

Read this next

blockdag

BlockDAG Dominates with New Dashboard Features and Enhanced Roadmap, Eclipsing Solana and Polygon Developments

Discover how BlockDAG’s cutting-edge dashboard and promising 30,000x ROI outshine developments in Solana and Polygon, positioning it as a leading investment.

blockdag

BlockDAG Dashboard Update, A Step Towards Transparency Fuels FOMO in Crypto Whales, Presale Garners $32.8M Amid Retik Finance Listing

Discover why investors are choosing BlockDAG after its dashboard update and $32.8M presale, surpassing Retik Finance listing on Bitrue.

blockdag

Discover 5 Altcoins to Skyrocket Your Wealth This Cycle 🚀

The bull run of 2024 ignites fresh excitement for anyone looking to increase their wealth.

blockdag

BlastUP Presale Hits $7M; Final Days to Buy $BLP

BlastUP, the premier launchpad on Blast, has confirmed its robust utility by successfully launching its first IDOs. As its presale nears completion, it continues to garner significant attention from crypto enthusiasts. The amount of funds raised so far is approaching 7 million, and BlastUP already boasts a large and passionate community of supporters.

blockdag

BlockDAG Network: The Mobile Mining Revolutionizing Crypto Mining

A Simple Guide on How to Mine BDAG and its Benefits.

blockdag

BlockDAG’s $600M Masterplan Shocks the World: Outperforms Retik Finance After Jaw-Dropping Piccadilly Circus Spectacle

Discover how BDAG dominates the global market as Retik Finance struggles at launch, showcasing a robust $600M growth plan and securing strong investor confidence.

Education

Top Business Ide­as for Success in 2024

Looking for the best busine­ss ideas to start in 2024? Our guide will help you find promising options. We­ cover sectors like digital, we­llness, and green innovations se­t for growth next year. 

Digital Assets

Coinbase seeks to dismiss SEC lawsuit citing new crypto laws

Crypto exchange Coinbase has renewed its efforts to appeal a judge’s ruling in its ongoing case with the U.S. Securities and Exchange Commission (SEC), citing recent legislative developments in Congress.

Digital Assets

Elon Musk mourns Kabosu, Dogecoin responds with price jump

Dogecoin (DOGE) price climbed on Friday after the passing of Kabosu, the Shiba Inu who inspired the meme cryptocurrency.

<