Bitcoin Swap Trading Platform Sanctioned by Regulators

A New Jersey-based bitcoin swap trading platform was sanctioned by U.S. derivatives regulators after it allegedly facilitated illegal wash trades and then misled U.S. regulators both through press releases and at a government-sponsored public meeting. The Commodity Futures Trading Commission said TerraExchange LLC pre-arranged the sale of a swap that derived its value from bitcoins for trading last October, in an effort to test its systems.