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U.S. CFTC Followed FinTelegram And Added CedarFX To Its RED List!

warning against CedarFX fairy dust broker
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FinTelegram has warned several times about the unauthorized offshore broker CedarFX operated by Cedar LLC in St. Vincent & The Grenadines. Related broker schemes are LonghornFX and CryptoRocket. The U.S. regulator Commodity Futures Trading Commission (CFTC) placed CedarFX and Cedar LLC on the RED list on June 12, 2023, along with dozens of other schemes and entities. Launched in 2015, the RED List now contains more than 240 entities.

The U.S. Commodity Futures Trading Commission (CFTC) added another 45 unregistered foreign entities to its Registration Deficient List (RED List). A firm is added to the RED List when it is not registered with the CFTC and appears to be acting in a capacity that requires registration, such as trading binary options, foreign currency (forex), or other products.

Background: The Commodity Exchange Act generally requires intermediaries in the derivatives industry to register with the CFTC. An “intermediary” is a person or firm that acts on behalf of another person in connection with trading futures, swaps, or options. Depending on the nature of its activities, an intermediary may also be subject to various financial, disclosure, reporting, and recordkeeping requirements.

For nearly 10 years, the CFTC has listed entities on the RED List that have the potential to do irreparable financial harm to unsuspecting Americans,” said Director of Enforcement Ian McGinley. “It is for this reason, we strongly encourage all customers to check the RED List before they trade because they may have little or no protections if they choose to trade with unregistered firms that operate outside the U.S.

The RED List is circulated to financial industry partners, including other regulators, consumer groups, industry participants, self-regulatory organizations, exchanges, and industry associations. It complements registration information provided by the National Futures Association.

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