Founders Personally Liable For Failure to Register Cryptocurrency Trading Platform, Court Says
Highlights
If a crypto trading platform fails to identify U.S. customers and screen, monitor, and report participants and transactions pursuant to CFTC and FinCEN rules, individuals can be personally liable
Three crypto co-founders held personally liable for failure to register digital asset derivatives platform and failure to comply with necessary requirements
Millions in civil penalties have been assessed to such individuals for violation of the Commodity Exchange Act and operating unregistered futures commissions
The Commodity Futures Trading Commission (CFTC) recently announced that the U.S. District Court for the Southern District of New York entered consent orders against three co-founders of a cryptocurrency derivatives trading platform for $30 million in personal civil monetary penalties. This is not the first time the platform has been cited.
Keep Up to Date in a Changing World
