A government financial regulator has brought its first case against a Bitcoin-related firm, declaring that such cryptocurrencies are “commodities.”
With the move, the Commodity Futures Trading Commission (CFTC) has now clearly demonstrated what it hinted at in 2013—that it will go after Bitcoin-related companies that do not register with the agency and do not comply with federal law.
On Thursday, the CFTC announced that it had issued an order against and settled charges with Coinflip, operating under the name Derivabit. The company allowed Bitcoin users to engage in options and futures trading. Most of the site was disabled in July 2014, with all customer money refunded, before the CFTC contacted the site. It was fully closed in January 2015.