Bitcoin and other cryptocurrencies can be considered as the goods and may be subject to regulation by the Commission on trade commodity futures U.S. (CFTC). This decision brought U.S. district judge Jack Weinstein in Brooklyn, seized the CFTC the owner of the company CabbageTech Patrick Kerry MacDonnell, reports Reuters.
In the ruling, Weinstein said that the CFTC has the right to sue for fraud MacDonnell, who, according to the Agency, from January 2017 have created a service Drop Coin Markets and have introduced clients to confusion, offering them advice on trading cryptocurrency.
In reality clients did not receive advice for which they paid. Coin Drop Markets has never been reported in the CFTC, and McDonnell closed the website and stopped responding to client requests.
The district judge also issued a preliminary injunction against McDonnell and Coin Drop Markets to participate in commercial transactions.
It is worth noting that for the first time the CFTC has recognized cryptocurrency product in 2015. Judge Jack Weinstein upheld the decision, stating that the CFTC has broad discretion to interpret the Federal law governing commodities.
We will remind, earlier the Commission CFTC and the securities and exchange Commission warned about the need to combat fraud in the cryptocurrency market. So, in February, the CFTC has offered a reward for information about cryptocurrency schemes “pump and dump”.