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Laxman Pai, Opalesque Asia:

The Commodity Futures Trading Commission (CFTC) released a press statement announcing federal courts would recognize virtual currencies as commodities and that CFTC had the power to prosecute fraud involving them.

The US District Court for the District of Massachusetts has ruled that CFTC has the power to prosecute fraud involving virtual currency.

The statement quoted CFTC Director of Enforcement James McDonald as saying: "This is an important ruling that confirms the authority of the CFTC to investigate and combat fraud in the virtual currency markets."

James added: "This ruling, like the one in McDonnell from Judge Weinstein in the Eastern District of New York, recognizes the broad definition of commodity under the CEA, and also that the CFTC has the power to prosecute fraud with respect to commodities including virtual currencies. We will continue to police these markets in close coordination with our sister agencies."

The court basically agreed with the CFTC's argument for My Big Coin (MBC) virtual currency being a commodity under the Commodity Exchange Act (CEA).

It has covered that MBC "is a virtual currency and it is undisputed that there is futures trading in virtual currencies (specifically involving Bitcoin)."

This decision strengthened CFTC's ability to prosecute cryptocurrency fraud and also brought virtual currencies under its jurisdiction.

The CFTC also issued several more protection Fraud Advisories th......................

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