CFTC to Collected Over $1.3B Fines in a Year

That's 39% more than last year; amount includes funds from civil legal penalties, the seizure of proceeds from illegal transactions and compensation 
27 November 2019   191

The U.S. Commodity Futures Trading Commission(CFTC) raised over $ 1.3 billion in administrative fines in fiscal 2019. The amount also includes payments from cryptocurrency operators.

According to the CFTC annual report, the regulator received $ 1,321,046,710 - 39% more than last year. This amount includes funds from civil legal penalties, the seizure of proceeds from illegal transactions and compensation for losses.

The CFTC did not indicate in the report the amount of fines received from companies related to digital assets. At the same time, the regulator mentioned some charges against players in the digital currency industry.

The commission recalled the Control-Finance cryptocurrency pyramid of $ 147 million, which affected more than 1,000 investors who lost 22,858 BTC. The CFTC also noted civil cases against John Barry Thompson, accused of fraud with bitcoins for $ 7 million, and Joseph Kim, who illegally misappropriated cryptocurrency. The latter was fined $ 1.1 million.

SEC to Accuse Shopin in $42M Worth ICO Scam

The Commission believes the actions of Shopic during the ICO was the offering or unregistered securities
12 December 2019   92

The U.S. Securities and Exchange Commission (SEC) has accused Shopin and its CEO Eran Eyal of cryptocurrency cheating on investors during the initial offer of $ 42 million tokens.

According to the SEC, the actions of Eyal and his company were an unregistered offer of securities in the form of Shopin tokens.

Eyal told investors that the funds raised would be used to create a blockchain platform for storing and tracking profiles of online store customers. In addition, he lied about existing partnerships with retailers, the agency said.

The problem is that Shopin never created a system, says the regulator.

Instead, Eyal appropriated more than $ 500,000 for personal use, including a dating service.

SEC accused Eyal and Shopin of violating securities laws. The regulator requested the court to oblige the accused to return the illegally appropriated funds with interest and payment of fines. In addition, the SEC has proposed banning Eyalu from acting as an official in any offer of securities or tokens.

In a statement, the SEC also recalled that the prosecutor’s office in 2018 accused Eyal of appropriating $ 600 thousand of investor funds to his previous company Springleap.