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ANALYSIS: CryptoDad’s CFTC Penalizes Crypto Startup for AML Violations

March 20, 2019, 8:19 PM

The Commodity Futures Trading Commission (CFTC) has garnered a reputation as the U.S. federal regulator most favorable toward cryptocurrencies and blockchain technology, with its Chairman Christopher Giancarlo dubbed “CryptoDad” in crypto/blockchain circles. The CFTC’s consent order on March 4, 2019 imposing $990,000 in penalties as part of the resolution of its action against 1pool Ltd. (1pool) and its owner/CEO Patrick Brunner shows that it nevertheless will not tolerate outright violations of relevant laws by cryptocurrency and blockchain businesses. This enforcement action shows that the crypto-friendly statements and policies of the CFTC should not make companies in the sector complacent, because ...