May 8, 2020

CFTC Files Complaint in Connection with Fraudulent Marketing of Binary Options and Digital Assets

The CFTC filed a Complaint with the U.S. District Court for the Southern District of Florida against several unregistered individuals and entities for conducting two fraudulent affiliate marketing schemes involving trading in binary options and digital assets. The CFTC alleged that the defendants initiated millions of solicitations in furtherance of the schemes between June 2014 and August 2018.

The CFTC cited violations of CFTC rules prohibiting: commodity options fraud; fraud by a Commodity Trading Advisor; use of deceptive devices, schemes and/or artifices; swaps fraud; and making false or misleading statements of material facts.

The CFTC is seeking a final judgment ordering the individuals and entities to: (i) pay full restitution to the defrauded customers; (ii) disgorge any ill-gotten gains; (iii) pay a civil monetary penalty; (iv) be permanently banned from registering with the CFTC or engaging in any activity that would require registration; (v) be permanently banned from trading in commodity interests; and (v) cease from further violating regulations under the Commodity Exchange Act.