Enforcement settlement
CFTC order against FTX and Alameda
AI summary
The order addresses conduct that was also charged criminally, and the civil remedies sit alongside those proceedings.
It reinforces that custody arrangements described to customers must match what the business actually does.
Who this applies to: Trading platforms, custodians, market making and proprietary desks, and crypto lending and asset management products
Implementation status: Enforcement settlement
- How customer assets are held, used and recorded must match what is disclosed.
- Related-party transactions need commercial substance, pricing rationale and full disclosure.
- Build restitution and penalty obligations into financial and governance planning.
Washington, D.C.— The Commodity Futures Trading Commission today announced it is extending the public comment period for a proposed rule requiring an Operational Resilience Framework for Futures Commission Merchants, Swap Dealers, and Major Swap Participants.The deadline is extended to April 1, 2024.The proposed rule was originally published on December 18, 2023, with a 75-day comment period that was scheduled to close on March 2, 2024.[See CFTC Press Release No.
8838-23] The Commission provided the extension in response to a joint request by four commenters.Comments may be submitted electronically through the CFTC Comments online process.All comments received will be posted on CFTC.gov.
Official English source text captured for the public library.