US Commodities Regulator CFTC Slaps Crypto Firm With $250,000 Fine, Issues Cease-and-Desist Order

US Commodities Regulator CFTC Slaps Crypto Firm With $250,000 Fine, Issues Cease-and-Desist Order


The Commodities Futures Trading Commission (CTFC) is hitting a crypto firm with a $250,000 fine and a cease-and-desist order.

According to a new press release, the commodities regulator is reprimanding crypto lending platform bZeroX and its founders Tom Bean and Kyle Kistner for allegedly illegally offering leveraged and margined positions.

The CTFC also says that the company and its founders were also caught “engaging in activities only registered futures commission merchants (FCM) can perform” and “failing to adopt a customer identification program as part of a Bank Secrecy Act compliance program, as required of FCMs.”

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The CTFC also simultaneously filed a federal civil enforcement action against Ooki DAO, the decentralized autonomous organization that succeeded bZeroX, for violating the same laws.

“The order finds, and the

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