CFTC v. COFCO Corp. and Chinatex Corp., Ltd. (wash trading, 2022)
Judgment entered
Checked against the primary document on October 2, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.
In September 2022, the CFTC settled charges against Beijing-based COFCO Corp. and Chinatex Corp., Ltd., ordering a joint US$720,000 penalty for wash trading in ICE cotton futures, position limit violations and reporting failures.
The record
| Agency | CFTC |
|---|---|
| Release number | 8592-22 |
| Date filed | 2022-09-23 |
| Date resolved | 2022-09-23 |
| Status | judgment |
| Asset class | futures |
| Venue | ICE |
| Criminal parallel | No |
| Defendants | COFCO Corp. ; Chinatex Corp., Ltd. |
| Techniques | Wash trading |
What was ordered
- Civil penalty
- $720k
- Disgorgement
- —
- Prejudgment interest
- —
- Total relief
- $720k
- Alleged gain
- —
What is alleged to have happened
The Commodity Futures Trading Commission announced this matter on September 23, 2022 as release 8592-22. The respondents named are COFCO Corp. and Chinatex Corp., Ltd. (0 individuals, 2 entities).
The order finds that between April 22 and May 1, 2020, Chinatex traders entered purchase orders in Chinatex's account and offsetting sale orders in an affiliate's account in the same cotton delivery month at nearly identical prices, to liquidate the affiliate's long position and re-establish it in Chinatex's own account for COFCO's benefit.
This library tags the matter as wash trading, based on the conduct the regulator describes. Each tag links to a page explaining how that technique works, what statute it engages, and what penalties comparable actions have attracted. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.
A joint and several $720,000 civil monetary penalty and a cease-and-desist order.
The respondents consented to the order.
What technique is this, and how does it work?
This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.
- Wash trading — see how it works, what statute it engages, and every other action tagged the same way.
Timeline
- 2022-09-23 CFTC release published
Primary documents
Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.
Related actions
Other actions in the library sharing at least one technique tag with this one.