- The Commodity Futures Trading Commission (CFTC) has initiated legal proceedings against individuals and their organization, Fundsz, for their involvement in a deceptive scheme related to cryptocurrencies and precious metals trading.
- The defendants, including residents of Florida, Louisiana, and Arkansas, are accused of misleading investment solicitations and enticing investors with implausible returns based on a purported “proprietary algorithm.”
- The CFTC has filed a complaint in the U.S. District Court for the Middle District of Florida, alleging that the defendants promised steady 3% weekly profits through cryptocurrency and precious metal trading.
- Fundsz was inaccurately portrayed as a profitable venture, with the defendants claiming that a $2,500 investment could turn into $1 million in just 48 months. They also falsely linked Fundsz to charitable initiatives to attract investors.
- The CFTC alleges that over 14,000 individuals were enticed by false weekly returns, but Fundsz did not actually trade customer funds. The entire venture relied on fabricated profits and deceptive assertions.
- Judge Wendy Berger has issued a statutory restraining order, freezing the defendants’ assets and appointing a temporary receiver. A preliminary injunction hearing is scheduled for August 23.
- The CFTC aims to seek restitution for deceived investors, reclaim ill-gotten gains, impose financial penalties, ban trading and registration, and obtain a lasting injunction against future infractions.
- In a separate case, the CFTC recently obtained a default judgment against a trader involved in a crypto fraud scheme.
Details of the Case
The Commodity Futures Trading Commission (CFTC) has filed charges against residents of Florida, Louisiana, and Arkansas for their involvement in a fraudulent scheme related to cryptocurrency and precious metals trading. The defendants, along with their organization Fundsz, are accused of using misleading investment solicitations to entice investors with false promises of high returns.
According to the CFTC, the defendants claimed to have a proprietary algorithm that could generate steady 3% weekly profits through cryptocurrency and precious metal trading. They falsely portrayed Fundsz as a profitable venture, suggesting that a $2,500 investment could turn into $1 million in just 48 months. The defendants also misled investors by linking Fundsz to charitable initiatives.
The regulatory body alleges that more than 14,000 individuals were enticed by false weekly returns, but Fundsz did not actually trade customer funds. The profits were fabricated, and the defendants used deceptive tactics to attract investors.
Legal Actions Taken
As a result of the investigation, Judge Wendy Berger of the U.S. District Court issued a unilateral statutory restraining order, freezing the defendants’ assets and appointing a temporary receiver. A preliminary injunction hearing is scheduled for August 23.
The CFTC aims to ensure fairness by seeking restitution for deceived investors, reclaiming ill-gotten gains, imposing financial penalties, banning the defendants from trading and registration, and obtaining a lasting injunction against future infractions.
This case is another example of the CFTC’s efforts to crack down on fraudulent schemes in the cryptocurrency and precious metals markets. The regulatory body is committed to protecting investors and maintaining the integrity of these markets.
