The CFTC filed a civil enforcement action in the U.S. District Court for the District of Utah against an Estonian-based company, Tallinex Limited ("Tallinex") and a Nevada based company, General Trader Fulfillment LLC ("GTF"). The CFTC alleged that Tallinex accepted foreign currency transaction orders from United States clients without registering with the CFTC, as required by the Commodity Exchange Act Section 2(c)(2)(C)(iii)(I)(aa) and CFTC Regulation 5.3. The CFTC also alleged that Tallinex misrepresented its profit probability and risk of loss to customers and never disclosed that it was acting as a counterparty to foreign exchange transactions without proper registration.
The CFTC charged GTF with "acting as an unregistered introducing broker by soliciting U.S. customers to open forex trading accounts with Tallinex."
The CFTC is seeking permanent bans and monetary penalties for both defendants.
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