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CFTC Clears Phantom to Offer Derivatives Trading Without Broker Registration

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CFTC Clears Phantom to Offer Derivatives Trading Without Broker Registration

The popular Solana wallet can now partner with registered exchanges to offer in-app access to derivatives and event contracts without registering as a broker.

Phantom, a popular self-custodial crypto wallet, has obtained no-action relief from the Commodity Futures Trading Commission (CFTC), allowing it to connect users to derivatives trading through registered market participants without registering as an introducing broker.

The relief allows Phantom to act as a technology service vendor (TSV) to Designated Contract Markets (DCMs), registered futures commission merchants (FCMs), or introducing brokers (collectively, “Collaborators”), enabling users to access event contracts, perpetual contracts, and other CFTC-regulated derivatives through Phantom’s interface.

Phantom described the relief as “first-of-its-kind,” signaling a potential regulatory template for other crypto wallet providers looking to bridge crypto-native users into traditional financial markets. Phantom also said it proactively engaged with the CFTC to clarify how a non-custodial interface could provide access to regulated markets.

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The letter imposes 10 conditions, including: providing users with risk disclosures consistent with CFTC regulations; complying with National Futures Association rules on public communications; executing joint-and-several-liability undertakings with each Collaborator; and maintaining records in line with CFTC standards. The relief remains in effect until the Commission issues formal rulemaking addressing broker registration requirements for software providers.

This article was written with the assistance of AI workflows. All our stories are curated, edited and fact-checked by a human.

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Crypto World

Bitrefill Claims Lazarus Group Hacked Them, Stealing Funds

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Bitrefill Claims Lazarus Group Hacked Them, Stealing Funds

Crypto e-commerce store Bitrefill has revealed it was the victim of a cybersecurity attack on March 1, with the methods used closely resembling those of Lazarus Group, North Korea’s notorious hacking organization.

In a post to X on Tuesday, Bitrefill said the hackers used malware, on-chain tracing, and reused IP and email infrastructure to compromise an employee’s laptop, enabling them to drain funds from the company’s hot wallets while also accessing 18,500 purchase records, potentially revealing “limited customer information.”

Bitrefill said BlueNoroff Group, another North Korean hacking organization with close ties to the Lazarus Group, may have also been involved or been the sole attacker.


Source: Bitrefill

Bitrefill, which enables customers to spend crypto on real-world products and gift cards, said there was no evidence that the hackers extracted its database, suggesting the motive was financial.

“There is no evidence that they extracted our entire database, only that the attackers ran a limited number of queries consistent with probing to understand what there was to steal, including cryptocurrency and Bitrefill gift card inventory.”

While Bitrefill didn’t disclose how much funds were stolen, the company said it “will absorb” those losses from its operational capital.

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“Almost everything is back to normal: payments, stock, accounts,” Bitrefill said, adding: “Sales volumes are also back to normal, and we are eternally thankful to our customers for your continued confidence in us.”