CDS Crypto News CFTC Alleges AML Violations and Unlicensed Operation by Three DeFi Protocols
Crypto News

CFTC Alleges AML Violations and Unlicensed Operation by Three DeFi Protocols

Opyn, ZeroEx, and Deridex, three decentralized exchanges, reached a settlement with the CFTC over a range of charges, which notably encompassed their failure to implement geoblocking measures for U.S. users.

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CFTC Alleges AML Violations and Unlicensed Operation by Three DeFi Protocols

Crypto News– In a recently issued order on Thursday, the U.S. regulatory body overseeing commodities and futures trading took action against three decentralized exchanges (DEXs). The Commodities and Futures Trading Commission (CFTC) both filed and settled charges against Opyn, ZeroEx (0x), and Deridex. This enforcement action involved imposing fines and issuing “cease and desist” orders.

CFTC Alleges AML Violations and Unlicensed Operation by Three DeFi Protocols

The CFTC’s actions were primarily in response to allegations that the three DeFi protocols had engaged in activities such as “illegally offering leveraged and margined retail commodity transactions in digital assets.” Additionally, the charges centered around their failure to secure the necessary licenses for their operations within the United States.

Furthermore, Deridex and Opyn faced additional charges for not registering as a swap execution facility (SEF) or designated contract market (DCM), as well as not registering as a futures commission merchant (FCM). Both of these exchanges were also held accountable for failing to block U.S. users and violating anti-money laundering laws specified in the Bank Secrecy Act.

The CFTC’s orders stipulate that Opyn, ZeroEx, and Deridex are required to pay civil monetary penalties of $250,000, $200,000, and $100,000, respectively. It’s worth noting that all three companies were based in Delaware and had operations in North Carolina.

The CFTC has also released a comprehensive report detailing the specific violations attributed to each of these exchanges.

CFTC Alleges AML Violations and Unlicensed Operation by Three DeFi Protocols

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