CFTC Cracks Down on Cash FX Crypto Scheme, Targets Tokenization Manipulation

The Commodity Futures Trading Commission (CFTC) has charged Cash FX with operating a $950 million forex scheme involving cryptocurrency. The CFTC claims that Cash FX misled investors about their investments, including tokenized assets.

In related news, the CFTC has been exploring the regulation of tokenization, which allows customers to invest in tokenized versions of already-permitted assets when they receive legal and economic rights equivalent to those of traditional ownership.

The agency issued a notice stating that 'mention' contracts on prediction markets must be presumptively considered susceptible to manipulation. This comes after the case of Gabriel Perez, where such contracts were used in a scheme involving manipulation.