CFTC charges five firms for operating as unregistered FCMs
The Commodity Futures Trading Commission has filed charges against five entities for operating as unregistered futures commission merchants (FCM). The entities, which claim to be based in either New York, N.Y. or at the same street address in Los Angeles, California, are Cryptostockoptionstrade Ltd, Global Smart Option Broker Ltd, Hypertradingoption Ltd, Stockbrokertechniques Ltd., and SprintTrade.
Each complaint seeks an order directing the respondent to cease and desist from committing violations of the Commodity Exchange Act (CEA) and CFTC regulations.
The complaints allege that from approximately July 2022 to present, the entities have operated as FCMs and claim to be regulated by the CFTC, but in fact are not registered as required by the CEA.
As alleged, all the respondents claim to be one of the leading platforms offering binary options, forex and spreads. Four of the five websites also tout purported customer testimonials apparently claiming to have earned significant funds trading binary options with that respondent. As alleged in the complaints, none of these entities are registered with the CFTC in any capacity.