Head of Global FX Club in plea negotiations with US govt

Maria Nikolova

The parties in the criminal case accusing Michael S. Wright of fraud have been in plea negotiations, the US government told Judge Paul A. Engelmayer in a Letter.

Further to FinanceFeeds’ report about the criminal case against Michael S. Wright, head of Wright Time Capital Group LLC, doing business as Global FX Club, the US government has announced that it is in plea negotiations with the defendant.

In a letter addressed to Judge Paul A. Engelmayer of the New York Southern District Court, Assistant United States Attorney Jacob Warren says that the parties in the case, captioned USA v. Wright (1:17-cr-00459), have been in plea negotiations and need more time to reach an agreement. Plea bargaining is a common practice in criminal cases, typically allowing the defendant to plead guilty to the charges in exchange for a less severe sentence.

The Judge has agreed to adjourn the hearing to October 13, 2017.

Mr Wright is accused of, inter alia, having falsely represented to investors that their money was used in off-exchange Forex transactions and of having used investor funds in a Ponzi-like manner to make payments to other investors.

According to the indictment, Mr Wright is charged on two counts: commodity fraud and wire fraud. He has to forfeit all property that is derived from proceeds from the offenses committed, including the sum of money generated from the said offenses.

Mr Wright was arraigned on July 28, 2017.

The criminal proceedings against Mr Wright have 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.

Specifically, 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. Defendants allegedly traded only a part of pool participants’ funds and misappropriated the bulk of those funds for unauthorized personal or business expenses such as food, clothing, jewelry, and entertainment.

Read this next

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”

Digital Assets

BingX publishes Proof-of-Reserve report by auditor Mazars to address general distrust in crypto

“It is our responsibility to help our customers know their platform and feel safe. They should only trade in regulated and licensed exchanges or one showing them proof when they need it.”

<