US CFTC Sanctions DeFi Firms for Alleged Illegal Derivatives Trading

  • The US CFTC imposes sanctions on Opyn, ZeroEx, and Deridex for alleged illegal trading of DeFi derivatives.
  • The firms were subjected to various civil penalties and received cease and desist orders.
  • The CFTC is tightening regulations in DeFi and taking measures against illegal activities.

The US Commodity Futures Trading Commission (CFTC) has sanctioned three decentralized finance (DeFi) firms for alleged illegal trading of crypto asset derivatives, marking a significant step in the regulatory body’s efforts to tighten regulations in the DeFi space.

Crackdown on DeFi Firms

The CFTC announced sanctions against three DeFi firms – Opyn Inc., ZeroEx Inc., and Deridex Inc. – for alleged violations of agency rules and enabling US customers to illegally trade digital asset derivatives without registration. The firms were slapped with civil penalties of $250,000, $200,000, and $100,000 respectively, and were issued cease and desist orders.

Regulatory Actions by the CFTC

The latest development comes as the US CFTC launched a series of actions aimed at addressing the burgeoning crypto space. The regulator proposed a time-based crypto pilot program and also resolved the largest Bitcoin forex fraud in market history. The US government is intensifying its scrutiny of the decentralized finance sector, commonly referred to as DeFi. These platforms enable users to trade crypto assets, borrow, and lend transactions without intermediaries.

Increased Oversight in DeFi

In recent months, government agencies have issued regulations indicating increased surveillance and scrutiny of DeFi participants, imposed sanctions, and taken enforcement actions. CFTC enforcement director Ian McGinley commented on the recent development, stating that DeFi operators had fallen into the misconception that illegal transactions became legal when facilitated by smart contracts, which is not the case.

CFTC Triumphs Against DeFi Fraud

In recent days, the US CFTC recorded a victory against a decentralized autonomous organization called Ooki DAO, which was alleged to operate an illegal trading platform and violate other agency rules. In June, a federal judge ordered the DAO to shut down and pay a fine exceeding $600,000. However, not all CFTC members agreed with the agency’s decision on Thursday. Republican Commission Member Summer Mersinger argued that the CFTC should focus on providing clear rules for DeFi rather than enforcement.


The CFTC’s recent actions underscore the regulatory body’s commitment to ensuring compliance within the DeFi sector. As the crypto space continues to evolve, regulatory bodies like the CFTC are expected to continue their efforts to protect consumers and maintain the integrity of the market.

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Gideon Wolf
Gideon Wolf
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.

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