Crypto Frauds & Manipulations Accelerate in 2022: CFTC Chairman Rostin Behnam Takes Action

The rise of cryptocurrency has brought unprecedented opportunities, but also a surge in crypto-related fraud and manipulation. According to Rostin Behnam, CFTC Chairman, the situation is rapidly intensifying. Now, according to Rostin Behnam, CFTC Chairman, the number of cases with respect to digital asset fraud and alleged market manipulation has continued to accelerate.

Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), has participated in several events this week, reclaiming the position of his agency in combating these illicit activities. He emphasizes the urgent need for enhanced regulatory oversight and enforcement.

The Commodity Futures Trading Commission (CFTC) will add resources and increase its efforts to address cryptocurrency-related fraud and manipulation cases. This commitment underscores the agency's dedication to protecting investors and maintaining market integrity.

The growing number of crypto-related enforcement cases brought before the CFTC highlights the pervasive nature of the problem. Rostin Behnam, the chair of the U.S. Commodity Futures Trading Commission (CFTC), expects more, signaling an active and aggressive approach to prosecution.

The CFTC’s authority to pursue these cases stems from Section 9(1) of the CEA, and the CFTC regulation promulgated thereunder, grants the CFTC broad regulatory authority over fraud and manipulation in the spot markets. This provides a legal framework for holding perpetrators accountable.

The CFTC is determined to address the systemic issues plaguing the crypto space. As I previously warned, “infrastructure challenges, consumer protection concerns, mismanagement, misconduct, fraud, market manipulation, and predatory trading tactics” require immediate and sustained attention. The CFTC, under Chairman Behnam’s leadership, is committed to creating a safer and more transparent environment for digital asset markets in 2022 and beyond.