CFTC Classifies Ethereum and Litecoin as Commodities in KuCoin Lawsuit

Publish on 26 March 2024

The Commodity Futures Trading Commission (CFTC) has designated both Ethereum (ETH) and Litecoin (LTC) as commodities in its recent lawsuit filings against KuCoin. The CFTC filed a civil enforcement action against the cryptocurrency exchange amid criminal charges against KuCoin and two of its founders.

According to the complaint, KuCoin engaged in illegal off-exchange commodity transactions without registering with the CFTC. Within the lawsuit, the commission identified Bitcoin, Ethereum, and Litecoin as commodities that investors traded on the exchange.

The CFTC's lawsuit against KuCoin highlights various illegal activities related to commodity transactions. Ethereum and Litecoin were specifically listed alongside Bitcoin as commodities that KuCoin allowed investors to trade without proper registration.

The lawsuit seeks civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.

In addition to the CFTC's actions, the Department of Justice filed criminal charges against KuCoin and its founders for violating the Bank Secrecy Act and failing to implement necessary customer identification procedures.

This lawsuit's designation of Ethereum as a commodity is notable, especially considering recent reports indicating that the U.S. Securities and Exchange Commission (SEC) is considering legal action to establish ETH's security status. The CFTC's classification of Ethereum as a commodity may conflict with the SEC's objectives regarding Ethereum's regulatory status.

Previous Post
KuCoin Reserves Dip as Outflows Reach $118 Million
Next Post
Crypto Slumps On War News But Bounce Incoming

Related News

Binance Resumes Spot Trading After Temporary Maintenance

After flagging a matching engine bug on the platfo...

Bitcoin NFT Sales Hit New Record for December 2023

Bitcoin activity spurted in December 2023 with a r...

France, Switzerland, Singapore to Test DeFi in Forex Markets

The countries' central banks started Project Maria...