CFTC Goes After Opyn, Other DeFi Operations in Enforcement Sweep

The Commodity Futures Trading Commission (CFTC) has charged 3 decentralized concern (DeFi) operations – Opyn, Inc., ZeroEx (0x), Inc. and Deridex, Inc. – with offering amerciable derivatives trading, according to a Thursday connection from the agency.

The 3 firms look a fig of accusations based connected their usage of blockchain-based protocols and astute contracts to relation arsenic trading platforms, according to the CFTC. The U.S. derivatives regulator is ordering Opyn, ZeroEx, and Deridex to cease the enactment and wage penalties of $250,000, $200,000, and $100,000, respectively. The companies agreed to these presumption to settee the charges. 

“Somewhere on the way, DeFi operators got the thought that unlawful transactions go lawful erstwhile facilitated by astute contracts,” said CFTC Director of Enforcement Ian McGinley. “They bash not.”

All 3 companies are accused of illegally offering leveraged and margined retail commodity transactions utilizing integer assets, the CFTC said.

Opyn, a DeFi marketplace associated with the token oSQTH, is simply a California-based institution that the CFTC besides accused of failing to decently registry arsenic a swap execution facility, a designated declaration marketplace and a futures committee merchant, and besides failing to acceptable up a lawsuit recognition programme to conscionable Bank Secrecy Act requirements. Deridex, a North Carolina company, was besides accused of those further violations.

Those companies and ZeroEx, known for its 0x protocol, were each said by the CFTC to person cooperated successful the investigation, getting a reduced fiscal punishment arsenic a result. 

One CFTC commissioner dissented successful the enforcement vote.

"The Commission’s Orders successful these cases springiness nary denotation that lawsuit funds person been misappropriated oregon that immoderate marketplace participants person been victimized by the DeFi protocols connected which the Commission has unleashed its enforcement powers," said Commissioner Summer Mersinger successful a statement. "I americium acrophobic that the Commission successful these cases is taking different measurement down the way of bringing enforcement actions erstwhile we should beryllium engaging with the public."