On September 24th, the U.S. Commodity Futures Trading Commission (CFTC) settled charges against TeraExchange LLC, a provisionally registered bitcoin swap execution facility (SEF).  The charges stem from a non-deliverable forward (“NDF”) contract based on the relative value of the U.S. Dollar and Bitcoin (the Bitcoin swap) executed over that SEF.

Background: Forwards and NDFs

A forward contract is an agreement between one party (the “Buyer”) and another party (the “Seller”) whereby the Buyer agrees to purchase something in the future from the Seller for a price that is agreed to
Continue Reading 3…The Number of Weeks in a Row for Bitcoin Related CFTC Guidance…CFTC Settles With Bitcoin SEF Over Wash Sales / Prearranged Trading