Treasury Vault, LLC, Forex Fraud, Utah 2019

Lehi, Utah – The U.S. Commodity Futures Trading Commission (CFTC) announced an order settling enforcement actions against Treasury Vault, LLC for operating as an unregistered retail foreign exchange dealer. The settlement, filed on October 23, 2019, details violations dating back to September 2017.

According to the CFTC, Treasury Vault offered off-exchange foreign currency (forex) trading services to U.S. retail customers through its website. These customers were not considered eligible contract participants and the transactions involved Vietnamese Dong and Iraqi Dinar. The company utilized a “reserve program” to finance these forex transactions, acting as the counterparty and failing to deliver the forex within the standard two-day timeframe. Instead, customers received their forex over a period of at least fifteen days after the transaction date.

The CFTC order mandates that Treasury Vault cease and desist from any further violations of regulations governing forex trading. Furthermore, the company is required to pay a civil monetary penalty of $75,000. The Commission acknowledged Treasury Vault’s cooperation during the investigation, resulting in a reduced penalty amount.

“This action reinforces that entities wishing to offer forex transactions to retail customers must ensure that they are registered and abide by the laws designed to protect the public,” stated James McDonald, Director of Enforcement at the CFTC. The CFTC emphasized the importance of verifying a company’s registration status before investing any funds, recommending the use of the NFA BASIC system to check registration details.

The case was led by CFTC staff members Timothy J. Mulreany, Paul G. Hayeck, and George Malas. The investigation highlights the CFTC's ongoing efforts to regulate the forex market and protect retail investors from unregistered and potentially fraudulent operations.

Source: CFTC.gov

Source: https://www.cftc.gov/PressRoom/PressReleases/8057-19