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Thursday, May 23, 2024 | Back issues
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D.C. Circuit Zaps GIGFX for Illegal Forex Trades

WASHINGTON (CN) - The Commodity Futures Trading Commission won a default judgment against foreign currency trader GIGFX LLC, one of 14 firms the agency filed enforcement actions against during a nationwide sweep in Jan. 2011.

The CFTC said the firms had all either engaged in forex transactions without registering as Retail Foreign Exchange Dealers or induced others to enter into a forex trade without registering as so-called Introducing Brokers.

The sweep was the first action taken by the commission to enforce registration requirements mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

After GIGFX, also known as Global Investment Gate, failed to respond to the complaint, the commission filed a motion for a default judgment with the U.S. District Court for the District of Columbia.

The court granted the commission's motion, banning GIGFX from foreign exchange transactions, ordering it to shut down its website and imposing $280,000 in fines for forex trading without prior registration.

As of Feb. 23 the GIGFX website was still online and did not mention the judgment.

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