CFTC Charges TeraExchange with Commodity Exchange Act Violations

On September 25, the U.S. Commodity Futures Trading Commission (CFTC) charged TeraExchange, a New Jersey-based Bitcoin swap trading platform.

The charges stem from an Oct. 8 non-deliverable forward contract on the TeraExchange platform, which the commission said had no associated transaction fees or collateral requirements.

According to the CFTC, these actions allegedly violated the Commodity Exchange Act and constituted false trading and front-running.

According to the materials, one of the parties involved in the transaction was the Australian Bitcoin mining company DigitalBTC, while the other was an unidentified “hedge counterparty.”

The CFTC has warned TeraExchange to avoid further violations of commodity exchange laws, but has not fined the company.

Not long ago, the U.S. Commodity Futures Trading Commission also charged Coinflip, a Bitcoin options trading platform. The agency pointed out that according to legal provisions, Bitcoin and digital currencies are commodities.

TeraExchange did not immediately respond to a request for comment from a CoinDesk reporter.

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