The US court granted the regulator a preliminary injunction against the $11 million fraudulent scheme that used BTC, which will allow circle Society to freeze its assets until further proceedings.
In your statement
in the U.S. District court in Nevada, judge Jennifer A. Dorsey ruled in favor of the commodity futures trading Commission (CFTC) and against Circle Society and its operator, David Saffron.
«… I believe this is an appropriate case to grant a preliminary injunction and other fair measures to preserve the status quo, protect clients from further loss and damage, and enable the Commission to perform its statutory duties, ” Dorsey said in a statement.
Circle Society’s assets will be frozen and the CFTC will be able to review the firm’s financial records before taking other enforcement actions. In mid-October, the CFTC announced
about filing a lawsuit against Circle Society and its owner, David Saffron, who are suspected of fraud.
At the time, the Commission said the defendants misappropriated at least $11 million worth of bitcoins and US dollars received from investors in the United States to “trade over-the-counter binary options to buy foreign currencies and cryptocurrencies.”
The CFTC and SEC are increasingly targeting cryptocurrency companies whose activities are suspicious and run counter to US laws. In the summer, a Texas court ordered two defendants to pay $360,000 for running a fraudulent cryptocurrency scheme after a CFTC lawsuit. In March, the CFTC fined the startup $990,000 for illegal bitcoin transactions, and last November, the Commission fined the cryptocurrency trader $1.1 million for fraud.
At the same time, the SEC Chairman recently said that the Commission has applied a “balanced but proactive approach” to regulating cryptocurrencies, which helps both retail and institutional investors.