Settlement of unregistered FX broker JAFX with CFTC secures Court approval
Judge Dustin B. Pead of the Utah District Court has signed a consent order approving the imposition of a monetary penalty of $600,000 on JAFX.
Less than a week after the United States Commodity Futures Trading Commission (CFTC) filed a proposed consent order with the Utah District Court in a move that was set to close its case targeting Forex firm JAFX, Magistrate Judge Dustin B. Pead has approved the proposed order. The consent order was signed by the Judge on June 22, 2020.
The order, inter alia, provides that JAFX shall pay a civil monetary penalty of $600,000. The Supplemental Consent Order resolves all issues remaining.
As FinanceFeeds has reported, the CFTC charged JAFX, an offshore company claiming to operate from St Vincent and the Grenadines and Bulgaria, with violating the Commodity Exchange Act and Commission Regulations.
The CFTC Complaint against the broker says that, beginning in at least September 2016, JAFX has offered retail Forex services to customers in the United States. The entity has never been registered as a retail foreign exchange dealer (RFED) or in any other capacity with the CFTC.
The CFTC notes it has not received any application from JAFX. The US regulator alleges that JAFX operates as an unregistered foreign exchange dealer and has failed to provide a disclosure statement.
