The Commodity Futures and Trading Commission, or CFTC, has recently filed a proposed consent order with JAFX Ltd, doing so with the District Court of Utah. The consent order will see that JAFX will pay up a civil monetary penalty worth $600,000
Two-Year Case Reaching Conclusion
It was back in 2018 when the US regulator hit FAFX with charges of operating an unregistered foreign exchange dealer within US soil. In doing so, the company stands in violation of the Commodity Exchange Act.
The CFTC claimed that JAFX claimed to be an FX broker based in Bulgaria, using this to take funds from US traders. They did so by conducting unregistered retail foreign currency trades, without giving up the mandatory payments to the relevant regulators.
Reaching An Agreement Quickly
According to the court documents, the legal counsel of the CFTC and JAFX have come to an agreement in regards to a Supplemental Consent Order of Permanent Injunction and Other Equitable Statutory Relief. Within this Consent Order, JAFX will be mandated to pay a civil monetary penalty worth $600,000
Further allegations from the CFTC entails that JAFX had intentionally misrepresented the probability of profit, as well as the risk of loss, to customers that would use the unregulated offshore broker. Furthermore, the exchange never disclosed that it served as a counterparty to FX transactions while not having the proper registrations for it.
The Evidence In Question
JAFX, according to its website, has been claimed to be in business since as early as 2013, operating within the jurisdictions of the Grenadines, as well as St Vincent. Further claims from the company entail the offering of a true ECN/STP brokerage, as well as providing the MetaTrader 4 platform. Another critical aspect of the company is its payment services are handled by JAFX EOOD, which itself is based within the Bulgarian Capital of Sofia.
These latest developments from the JAFX vs. CFTC saga came just after a month since the documents themselves were filed with the District Court of Utah. These documents themselves also demonstrated that both the commodities regulator and the JAFX seemed to be close to reaching a settlement.
CFTC On A Good Roll
The CFTC has been hitting quite the roll as of late. In recent months, the regulator has been issuing charges rapid-fire, achieving an almost daily issuance rate. It was just yesterday when the US regulator managed to gain a permanent injunction from the Northern District Court of Alabama against one Aaron B Butler and his company, one Negus Capital Incorporated, or NCI.
Both parties were charged with misappropriation, fraudulent solicitation, as well as registration violations, all in connections with binary options trading.