A federal district court entered an Order of Final Judgment by Default that requires two web-based binary options firms to jointly and severally pay a $3 million civil monetary penalty and $1,587,731 in restitution to their defrauded customers.
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Forex Capital Markets, LLC ("FXCM"), FXCM Holdings, LLC, and two founding partners of FXCM were ordered to pay a $7 million civil monetary penalty for defrauding retail foreign exchange customers. FXCM and its founders agreed to withdraw from CFTC registration and were permanently barred from NFA membership.
The CFTC added 21 names to a list of foreign entities that are not registered with the CFTC. These entities are suspected of soliciting and accepting funds from U.S. retail investors for trading in binary options or foreign currency.
The CFTC advised the public to avoid unregistered brokers and advisers promoting their services on social media platforms.
The CFTC highlighted the risks of investing in commodity exchange-traded products or funds.