Breaking: The Special Master in My Forex Funds Case Recommends Dismissal and Sanctions Against CFTC

By: finance magnates|2025/05/14 07:00:09
0
Share
copy
A Special Master has recommended that a U.S. court impose sanctions and "dismiss with prejudice" the case brought by the Commodity Futures Trading Commission (CFTC), accusing the agency of deliberately misleading the court in its high-profile enforcement action against Traders Global Group Inc., the company behind My Forex Funds. According to Special Master Jose L. Linares:“In multiple instances, with full knowledge of the error in a sworn declaration submitted to the Court, rather than be upfront, direct, and transparent, the CFTC took deliberate steps down a path of obfuscation and avoidance. In this case in particular, the need for specific deterrence is paramount, and a significant sanction is warranted.” Acting CFTC Commissioner Caroline D. Pham responded:“As described in detail in the Court’s report, the CFTC engaged in willful and bad faith conduct by making multiple false statements to the Court and other ‘numerous instances of sanctionable behavior’ over the course of a year. This is inexcusable.” In a joint statement, My Forex Funds’ legal counsel—Quinn Emanuel and King & Spalding—stated:“The CFTC falsely accused our clients of fraud, shut down their businesses, and froze all of their money on the basis of a false, secret submission to the court. As the Special Master’s findings confirm, the CFTC staff misled the court and violated their duty of candor in order to freeze our clients’ assets. Those already serious transgressions were then compounded by a series of decisions by the CFTC to obfuscate and minimize its wrongdoing—in the Special Master’s words, intentionally and in bad faith." This story is evolving and will be updated with new details shortly A Special Master has recommended that a U.S. court impose sanctions and "dismiss with prejudice" the case brought by the Commodity Futures Trading Commission (CFTC), accusing the agency of deliberately misleading the court in its high-profile enforcement action against Traders Global Group Inc., the company behind My Forex Funds. According to Special Master Jose L. Linares:“In multiple instances, with full knowledge of the error in a sworn declaration submitted to the Court, rather than be upfront, direct, and transparent, the CFTC took deliberate steps down a path of obfuscation and avoidance. In this case in particular, the need for specific deterrence is paramount, and a significant sanction is warranted.” Acting CFTC Commissioner Caroline D. Pham responded:“As described in detail in the Court’s report, the CFTC engaged in willful and bad faith conduct by making multiple false statements to the Court and other ‘numerous instances of sanctionable behavior’ over the course of a year. This is inexcusable.” In a joint statement, My Forex Funds’ legal counsel—Quinn Emanuel and King & Spalding—stated:“The CFTC falsely accused our clients of fraud, shut down their businesses, and froze all of their money on the basis of a false, secret submission to the court. As the Special Master’s findings confirm, the CFTC staff misled the court and violated their duty of candor in order to freeze our clients’ assets. Those already serious transgressions were then compounded by a series of decisions by the CFTC to obfuscate and minimize its wrongdoing—in the Special Master’s words, intentionally and in bad faith." This story is evolving and will be updated with new details shortly

You may also like

Particle Founder: The entrepreneurial insights I have gained the most from in the past year

Stop lean startup, stop lightning entrepreneurship, and think carefully about what your product aspirations are.

Huang Renxun's latest podcast transcript: The future of Nvidia, the development of embodied intelligence and agents, the explosion of inference demand, and the public relations crisis of artificial intelligence

The competition in the future is not just about whose model is larger or whose computing power is stronger, but also about who understands the industry better, who can embed AI more deeply into real processes, and who can organize these capabilities into a runnable and scalable system.

OKX Ventures Research Report: AI Agent Economic Infrastructure Research Report (Part 1)

The existing infrastructure is hostile to the Agent economy. Agents can think and act independently at the "capability level," but at the "economic level," they are still locked into infrastructure designed for humans.

The migration of settlement rights: B18 and the institutional starting point of on-chain banks

In the traditional system, banks decide the settlement; in the on-chain system, code begins to take over this responsibility.

From Tencent and Circle: Looking at the Simple and Difficult Questions of Investment

The AI narrative continues to ferment, but the recent performance of related stocks varies, with some in the midst of summer and others as if in winter.

The second half of stablecoins no longer belongs to the crypto circle

What Coinbase doesn't want, Mastercard is eager to buy.

Popular coins

Latest Crypto News

Read more