HOUSTON, TX – The Commodity Futures Trading Commission (CFTC) has filed charges against fourteen entities accused of operating illegally within the commodities and cryptocurrency markets. The complaints, filed September 29, 2021, allege violations of the Commodity Exchange Act and CFTC regulations, specifically regarding unregistered activity and false claims of regulatory oversight.
Twelve of the entities are accused of functioning as unregistered Futures Commission Merchants (FCMs), offering binary options tied to commodities – including foreign currencies and cryptocurrencies like Bitcoin – to the public. The CFTC alleges these companies solicited funds from customers without obtaining the necessary FCM registration.
Two complaints specifically target entities making false claims of CFTC and National Futures Association (NFA) membership. Climax Capital FX, allegedly operating from both Walsall, United Kingdom and Houston, Texas, and Digitalexchange24.com, purportedly located in Jasper, Arkansas, are accused of falsely representing themselves as registered FCMs and NFA members. Both entities allegedly used the same, invalid NFA identification number – a number linked to an individual who passed away in 2009 and never held any current registration with the NFA.
“Today’s actions reflect the CFTC’s dedicated efforts to aggressively root out bad actors falsely claiming to hold legitimate registrations and protect the trading public,” stated Vincent McGonagle, Acting Director of the CFTC’s Division of Enforcement. The agency is urging the public to verify a company’s registration status through NFA BASIC and the CFTC website before investing any funds.
The CFTC is seeking cease and desist orders against all fourteen entities. Penalties and further enforcement actions are pending as the investigation continues. The case is being led by CFTC staff members Christopher Giglio, Elizabeth C. Brennan, David W. Oakland, Lara Turcik, K. Brent Tomer, Lenel Hickson, Jr., and Manal M. Sultan.
Source: CFTC.gov
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