CFTC Secures $2.4M Judgment Against Forex Companies for Fraud

CFTC Press Releases

Filed March 13th, 2026

Detected March 14th, 2026

Summary

The CFTC announced a default judgment against Safety Capital Management Inc. and GNS Capital Inc. for retail forex fraud. The companies were ordered to pay over $2.4 million in restitution and civil monetary penalties.

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What changed

The Commodity Futures Trading Commission (CFTC) has secured a default judgment against Safety Capital Management Inc. and GNS Capital Inc., operating as ForexnPower, for engaging in retail forex fraud, fraud as commodity pool operators and commodity trading advisors, and related violations. The U.S. District Court for the Eastern District of New York ordered the companies to pay $835,058 in restitution and a combined $1,627,245 in civil monetary penalties, totaling over $2.4 million. This judgment resolves the CFTC's claims from a 2015 complaint and permanently enjoins the companies from further violations of the Commodity Exchange Act.

This enforcement action highlights the severe consequences of forex fraud, particularly when targeting vulnerable communities. While the judgment imposes significant financial penalties, the CFTC cautions that restitution orders may not result in full recovery for victims due to potential insufficient funds or assets of the defendants. Regulated entities should review their practices to ensure compliance with anti-fraud provisions and consumer protection regulations within the forex market.

What to do next

Review internal controls for retail forex operations.
Ensure compliance with anti-fraud provisions of the Commodity Exchange Act.
Assess customer protection measures, especially for vulnerable demographics.

Penalties

Restitution of $835,058 and civil monetary penalties of $1,441,143 against Safety Capital and $186,102 against GNS.

Source document (simplified)

Release Number 9195-26

CFTC Secures Judgement Against New York Companies to Pay Over $2.4 Million in Restitution, Penalties for Forex Fraud

March 13, 2026

WASHINGTON **** — The Commodity Futures Trading Commission today announced the U.S. District Court for the Eastern District of New York enter ed a default judgment against Safety Capital Management Inc. , and GNS Capital Inc. , both doing business as ForexnPower in Queens, New York, for retail forex fraud, fraud as commodity pool operators and commodity trading advisors, and related regulatory violations.

The court adopted a magistrate judge’s report and recommendation finding that the companies “deliberately exploited their access to a vulnerable community — Korean-language speakers in Queens who were totally reliant on [the defaulting] defendants to protect and manage their investments.”

The court ordered Safety Capital and GNS to pay $835,058 in restitution, jointly and severally with defendants John H. Won and Tae Hung Kang aka Kevin Kang.

The court also ordered civil monetary penalties of $1,441,143 against Safety Capital and $186,102 against GNS, representing triple the monetary gain from the offenses. The court order permanently enjoins the companies from further violations of the Commodity Exchange Act and Commission regulations, as charged.

The default judgment resolves all remaining claims in the CFTC’s Sept. 25, 2015, complaint [See CFTC Press Release No. 7245-15 ]. A consent order entered Aug. 31, 2022, resolved all claims against Kang [See CFTC Press Release No. 8583-22 ]. A Sept. 19, 2024, summary judgment order resolved all claims against Won.

In a parallel criminal case, United States v. Kang, et al., No. 18-cr-184 (E.D.N.Y. April 11, 2018), Kang pleaded guilty to securities fraud conspiracy. A jury found Won guilty of securities fraud and conspiracies to commit wire fraud, securities fraud, and money laundering.

The CFTC cautions that restitution orders may not result in victims recovering any money lost because defendants may not have sufficient funds or assets.

-CFTC-