CFTC Fines Bitcoin Exchange Bitfinex $75,000 Over Trading Violations

[alyssa85]

http://www.coindesk.com/cftc-bitcoin-exchange-bitfinex-trading-violations/

Hong Kong-based bitcoin exchange Bitfinex has settled with the US Commodity Futures Trading Commission (CFTC) following an investigation into its financed trading activities.

Bitfinex settled charges that it offered illegal off-exchange financed retail commodities trading, as well as failed to register as a futures commission merchant. Bitfinex did not admit or deny the CFTC findings, the agency said today.

According to an order published today by the CFTC, the issues arose owing to how Bitfinex held functional control over funds tied to leveraged or margin trading on the platform. The CFTC said that because no actual commodities were delivered by Bitfinex to its customers – the private keys tied to the applicable bitcoins remained under the exchange’s control – it was in violation of the Commodity Exchange Act.

Bitfinex will pay $75,000 in civil penalties, according to the order, and has moved to change its internal policies and avoid further violations of the Commodity Exchange Act.

[RawDog]

CFTC is a bunch of jack-booted thugs.  

This is not really 'enforcement'.  This is pure extortion.  Those guys want to make a name for themselves.  They will go into politics next.  That is how it is done in US law and government.

[franky1]

but bitcoin is not a commodity..

a commodity is a product that is used to produce other products.
EG
wheat->bread
beef->burgers
gold->jewellry/circuit boards.
oil-> plastics/car fuel

the commodities market is essential the raw material pricing platform for pretty much scales the supply costs of most international manufacturing.

bitfinex should have been fined/accused by an organization more linked to currencies exchange.

i think this story is more about them "ambulance chaser court case accusations" saying the sttlement is cheaper than going to court.. not because it holds merit if it went to court. but purely because its cheaper then even turning up just to defend themselves, so they might aswell pay the settlement just to not have to get on a plane.

there are many "legal consultant" businesses that know how much X would pay to defend themselves in court.. and so they write a letter of accusation and pay $100 to get a piece of court paper work and then demand a percentage of X just to make the matter go away.

in the UK many consumers do this by knowing a business being reported to an omburdsman costs the business £500 a shot.. so any claims under £250 usually get settled quick. letting many people abuse this to get quick cash back

in short if bitfinex was to defend itself there is a chance it would win.. but the cost would be much higher

[Bitcoinpro]

Their is no way they can fix the private key issue

and that's like saying barrels of oil move on crude

exchanges and they most certainly don't

but if u have a barrel of oil buyers will buy

at the exchange price that's how it works

has the CFTC gone batsht crazy or is

the journalism inaccurate on the charges

[Bitcoinpro]

but bitcoin is not a commodity..

a commodity is a product that is used to produce other products.
EG
wheat->bread
beef->burgers
gold->jewellry/circuit boards.
oil-> plastics/car fuel

the commodities market is essential the raw material pricing platform for pretty much scales the supply costs of most international manufacturing.

bitfinex should have been fined/accused by an organization more linked to currencies exchange.

10 more years u might know wat ur talking about dude

[serje]

but bitcoin is not a commodity..

a commodity is a product that is used to produce other products.
EG
wheat->bread
beef->burgers
gold->jewellry/circuit boards.
oil-> plastics/car fuel

the commodities market is essential the raw material pricing platform for pretty much scales the supply costs of most international manufacturing.

bitfinex should have been fined/accused by an organization more linked to currencies exchange.

i think this story is more about them "ambulance chaser court case accusations" saying the sttlement is cheaper than going to court.. not because it holds merit if it went to court. but purely because its cheaper then even turning up just to defend themselves, so they might aswell pay the settlement just to not have to get on a plane.

there are many "legal consultant" businesses that know how much X would pay to defend themselves in court.. and so they write a letter of accusation and pay $100 to get a piece of court paper work and then demand a percentage of X just to make the matter go away.

in the UK many consumers do this by knowing a business being reported to an omburdsman costs the business £500 a shot.. so any claims under £250 usually get settled quick. letting many people abuse this to get quick cash back

in short if bitfinex was to defend itself there is a chance it would win.. but the cost would be much higher

Frank1 a little update from September 2015
http://www.coindesk.com/cftc-ruling-defines-bitcoin-and-digital-currencies-as-commodities/

And guess what .... They started to investigate bitfinex on September 2015

[franky1]

Frank1 a little update from September 2015
http://www.coindesk.com/cftc-ruling-defines-bitcoin-and-digital-currencies-as-commodities/

And guess what .... They started to investigate bitfinex on September 2015

but the coinflip case had no "ruling" .. there was just an out of court settlement.. meaning the case was dropped. thus no precedent, and only a claim..

as i said, the CFTC are just playing the ambulance chaser game of scaring people with legal action for quick pay days.

bitcoin exchanges using american dollars or where the business is headquartered in america should be dealt with by the SEC.


by the way
straight from the definitions page of the commodities exchange act

(9) Commodity
The term “commodity” means wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, mill feeds, butter, eggs, Solanum tuberosum (Irish potatoes), wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, soybean meal, livestock, livestock products, and frozen concentrated orange juice, and all other goods and articles, except onions

onions are not covered by CFTC but bitcoins are?? how american!

anyway im glad to be british.. atleast our agencies know how to handle things properly.

[Bitcoinpro]

Onion future's are covered by the CTFC

ie CFuturesTC

seems as though the exchange

was selling BTC future's or

something exotic

the Private Key part is complete

Hogwash though and could

give  grounds for an appeal

[alyssa85]

Frank1 a little update from September 2015
http://www.coindesk.com/cftc-ruling-defines-bitcoin-and-digital-currencies-as-commodities/

And guess what .... They started to investigate bitfinex on September 2015

Well spotted. The takeaway from this is that any exchange anywhere around the world, is regulated by CFTC if they have American customers...

[Bitcoinpro]

Frank1 a little update from September 2015
http://www.coindesk.com/cftc-ruling-defines-bitcoin-and-digital-currencies-as-commodities/

And guess what .... They started to investigate bitfinex on September 2015

Well spotted. The takeaway from this is that any exchange anywhere around the world, is regulated by CFTC if they have American customers...

Sec regulates markets CFTC does future's

(Prob a lot of overlap)

And the exchange will only listen to the charges

if they value their US clientel, so obviously

they would be making millions already to

pay this fine instead of cancelling US accounts

big money at play here with BTC and in the

future's markets too

[Bitcoinpro]

I want to start Eth future's

I'll let Bart work out Wtf Eth

actually is 

no one else has any idea

[DannyHamilton]

by the way straight from the definitions page of the commodities exchange act

(9) Commodity
The term “commodity” means wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, mill feeds, butter, eggs, Solanum tuberosum (Irish potatoes), wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, soybean meal, livestock, livestock products, and frozen concentrated orange juice, and all other goods and articles, except onions

Oops.  You had a problem with your copy/paste.  Looks like it cut off before the sentence finished.  Here's the rest...

and all services, rights, and interests (except motion picture box office receipts, or any index, measure, value or data related to such receipts) in which contracts for future delivery are presently or in the future dealt in.

[Bitcoinpro]

by the way straight from the definitions page of the commodities exchange act

(9) Commodity
The term “commodity” means wheat, cotton, rice, corn, oats, barley, rye, flaxseed, grain sorghums, mill feeds, butter, eggs, Solanum tuberosum (Irish potatoes), wool, wool tops, fats and oils (including lard, tallow, cottonseed oil, peanut oil, soybean oil, and all other fats and oils), cottonseed meal, cottonseed, peanuts, soybeans, soybean meal, livestock, livestock products, and frozen concentrated orange juice, and all other goods and articles, except onions

Oops.  You had a problem with your copy/paste.  Looks like it cut off before the sentence finished.  Here's the rest...

and all services, rights, and interests (except motion picture box office receipts, or any index, measure, value or data related to such receipts) in which contracts for future delivery are presently or in the future dealt in.

that's only because it's illegal to trade that extra sht

[Bitcoinpro]

I found the story about the Onions

https://en.wikipedia.org/wiki/Onion_Futures_Ac

I'm blaming the potatoe