CFTC Charges Four In Crypto Fraud
The Commodity Futures Trading Commission (CFTC) has taken a decisive step against a fraudulent crypto and precious metals trading scheme, charging four individuals for their involvement in a deceptive operation. The regulatory body filed a complaint on August 11, targeting Rene Larralde, Juan Pablo Valcarce, Brian Early, and Alisha Ann Kingrey for their role in fraudulent solicitation.
Today the CFTC charged residents of Florida, Louisiana, and Arkansas in ongoing cryptocurrency and precious metals fraud. Learn more: https://t.co/pcaH2kmUBB
— CFTC (@CFTC) August 11, 2023
Unmasking Fundsz
The accused individuals allegedly orchestrated a scheme where they solicited funds from unsuspecting customers by falsely claiming to invest in cryptocurrencies and precious metals. The fraudulent operation relied on a purported “proprietary algorithm” that promised over 3% weekly returns. The CFTC also exposed the unregistered entity called Fundsz, which the alleged scammers used as a front to deceive victims.
The defendants lured victims with the audacious promise of transforming a mere $2500 deposit into $1 million within four years, exploiting a fabricated charitable façade labelled “Fundsz for your cause.” Deceptively marketed as supporting humanitarian initiatives like clean water provision and disaster relief, the contributions were actually funnelled into the fraudulent scheme. Approximately 14,000 individuals fell victim to this elaborate scam, with none receiving the promised returns. Instead, the fraudsters manipulated the situation by generating fake weekly reports to keep investors at bay.
CFTC’s Vigilance
In response to these grievous actions, a U.S. District Court judge issued a statutory restraining order to freeze the assets of the accused quartet. A preliminary injunction hearing is scheduled for August 23, during which the CFTC aims to secure restitution for the victims ensnared in this deceitful operation.
Read More: SEC Delays Decision On Ark & 21Shares Bitcoin ETF
This legal action underscores the CFTC’s ongoing commitment to curbing crypto-related fraud. Earlier in July, the agency pursued a lawsuit against a Tennessee couple involved in a crypto commodity pool scam that defrauded more than 100 real estate clients of at least $6 million. The vigilance of the CFTC is a testament to its resolve in safeguarding investors and maintaining the integrity of the crypto market.
