The Commodity Futures Trading Commission (CFTC) on Friday disclosed that it has ordered Starberry Limited to pay $1,376,206.81 in civil monetary penalty.

The pay is to settle the charges against the Cyprus-headquartered business corporation.

CFTC charged Starberry for acting as a futures commission merchant (FCM) without registration. 

 

According to the US derivatives markets regulator, Starberry between February 28 and March 17, 2020 accepted more than $400 million from a foreign customer. 

 

After depositing the fund in its trading account, Starberry executed NYMEX West Texas Intermediate (WTI) crude oil futures contracts trades with the fund, CFTC added.

 

The corporation made more than $86 million in profits for the foreign customer, the regulator noted, adding that Starberry earned $1,376,206.81 in commission and fees from the arrangement.

 

The fine aside, CFTC said it warned  Starberry against further violating Section 4d(a)(1) of the Commodity Exchange Act (CEA).

 

“Starberry also agrees to disgorge $1,376,206.81 in commission and fees it unlawfully earned by acting as an FCM without registration,” CFTC said in a media release.

 

Gretchen Lowe, Acting Director of Enforcement Director, noted that the watchdog will continue to clampdown on FCMs that are not registered.

 

“The CFTC strongly urges the public to verify a company’s registration with the CFTC before committing funds,” CFTC said in the statement. 

“If unregistered, a customer should be wary of providing funds to that company. A company’s registration status can be found using NFA BASIC,” the regulator further said.

 

CFTC and Crypto

 

Earlier this month, CFTC sued cryptocurrency exchange Gemini for allegedly misleading the regulator while undergoing the approval process for a Bitcoin futures product in 2017.

 

Additionally, the regulator alleged that Gemini personnel “knew or reasonably should have known” about the false or misleading information the exchange was providing.

 

CFTC also recently bust a $44 million ponzi cryptocurrency investment scheme. 

 

The regulator said perpetrators defrauded at least 170 investors.

This article was written by Solomon Oladipupo at www.financemagnates.com.Institutional FX, RegulationRead More

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