CFTC Goes After Opyn, Other DeFi Operations in Enforcement Sweep

CFTC charges 3 DeFi firms - Opyn, 0x, Deridex - with offering illegal derivatives trading
Firms accused of operating trading platforms via blockchain without proper registration
Opyn to pay $250k penalty, 0x to pay $200k, Deridex to pay $100k to settle charges
CFTC says smart contracts don't make unlawful transactions lawful
1 CFTC commissioner dissented, concerned about enforcement without evidence of victimization

coindesk.com

Relevant topic timeline:

8/31/2023

Why DeFi’s Woes May Be Existential

Hackers have targeted decentralized finance (DeFi) protocols almost 500 times since 2019, stealing a total of $6 billion, highlighting the vulnerabilities of the smart contracts that underpin DeFi platforms. The recent surge in hacks, along with declining market share and increasing interest rates, has led to the closure of several platforms and calls for regulations to prevent money laundering and enhance security measures.

9/8/2023

CFTC Cracks Down on Major DeFi Firms for Unregistered Trading and Identity Violations

The Commodity Futures Trading Commission (CFTC) has issued charges and fines against three major DeFi firms in the US, signaling a potential crackdown and more stringent regulation in the decentralized finance sector.

9/9/2023

CFTC Fines Mirror Trading Int'l $1.7B for Massive Bitcoin Ponzi Scheme

The US Commodities Trading Futures Commission (CFTC) has imposed a $1.7 billion penalty and a ban on South African Bitcoin trading firm Mirror Trading International (MTI) for defrauding investors in a multilevel marketing scheme involving foreign currency transactions.

9/10/2023

FTX Liquidation of $3.4B in Crypto Assets Sparks Fears of Market Impacts

Cryptocurrency exchange FTX is expected to receive court approval to liquidate $3.4 billion in cryptocurrencies, causing concern among stakeholders and potentially impacting Ethereum, Solana, and altcoins.

9/14/2023

Coinbase CEO Urges CFTC to Avoid Enforcement Actions Against DeFi Protocols

Coinbase CEO Brian Armstrong urges the U.S. CFTC to avoid enforcement actions against decentralized finance (DeFi) protocols, stating that they should be resolved in court to set a precedent.

9/15/2023

Coinbase CEO Backs DeFi in Courts, MakerDAO Founder Bullish on Dai, Polygon's ZK Bet Pays Off as DEX Wash Trading Exposed

Coinbase CEO Brian Armstrong advocates for decentralized finance (DeFi) protocols and suggests legal action to establish a legal precedent, while MakerDAO's founder believes decentralized stablecoins could dominate the crypto market, and Polygon CEO acknowledges the success of their $1 billion investment in zero-knowledge proof rollups. Additionally, market surveillance firm Solidus Labs reveals that decentralized exchanges have become a hotspot for wash trading, and a DeFi advocacy group petitions to stop a patent troll from targeting DeFi protocols. Despite a mixed week for the top 100 DeFi tokens, the total value locked into DeFi protocols remains above $49 billion.

9/26/2023

DeFi Derivatives Platform Avantis Labs Raises $4M to Enable On-Chain Forex and Commodities Trading

Decentralized finance (DeFi) derivatives ecosystem Avantis Labs has raised $4 million in a seed funding round led by Pantera Capital to grow its flagship product Avantis, a perpetual-trading and market-making protocol that aims to enable forex and commodities to be hedged and traded on-chain without the need for tokenization, with plans to expand its capabilities beyond perpetual trading to include options trading in the future.

Topics

Posted 9/7/2023, 11:01:00 PM