October 23, 2019
CFTC Sues Unregistered Retail Forex Exchange Dealer
Washington, DC – The U.S. Commodity Futures Trading Commission today announced it issued an order filing and settling an enforcement action against Treasury Vault, LLC of Lehi, Utah for acting as an unregistered retail foreign exchange dealer.
Starting in September 2017, Treasury Vault began offering through its website certain services in off-exchange foreign currency (forex) trading to U.S. retail customers who were not eligible contract participants. The retail forex transactions were in Vietnamese Dong and/or Iraqi Dinar.
According to the order, Treasury Vault offered customers forex transactions utilizing a “reserve program” financing option. The “reserve program” was financed by Treasury Vault, which acted as the counterparty to the retail forex transaction. These transactions did not result in actual delivery of forex within two days of the transaction but the customers did receive their forex over a period of not less than fifteen days following the date of the transaction.
The CFTC order requires Treasury Vault to cease and desist from further violations, and to pay a civil monetary penalty of $75,000. The Commission also recognizes Treasury Vault’s cooperation with the Division of Enforcement’s investigation of this matter in the form of a substantially reduced civil monetary penalty.
“This action reinforces that entities wishing to offer forex transactions to retail customers must ensure that they are registered and abide by the laws designed to protect the public,” said CFTC Director of Enforcement James McDonald.
The CFTC strongly urges the public to verify a company’s registration with the CFTC before committing funds. If unregistered, a customer should be wary of providing funds to that company. A company’s registration status can be found using NFA BASIC.
The Division of Enforcement staff members responsible for this case are Timothy J. Mulreany, Paul G. Hayeck, and George Malas.