The CFTC Accuses Tennessee Real Estate Business Owners of Running a Fraudulent Crypto Scheme
The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Michael and Amanda Griffis, owners of EXIT Realty Screamin’ Eagle in Tennessee, for allegedly running a fraudulent crypto scheme that defrauded over 100 individuals out of more than $6 million.
Key Points:
- The Griffises allegedly deceived investors by promising outsized returns and the opportunity to speculate on the future value of cryptocurrencies through their digital asset commodity pool, “Blessings of God Thru Crypto.”
- They misrepresented the security of investors’ funds and claimed to trade “crypto futures” on the ‘Apex Trading Platform’ under the guidance of a figure referred to as “Coach Wendy.”
- The couple manipulated their professional relationships to lure victims into the commodity pool and blended the pool funds with their personal accounts, violating proper financial management practices.
- A small percentage of the funds collected was paid out to select investors as a facade of legitimate operations, but the CFTC asserts that this was not the result of successful trading.
- The lawsuit seeks reimbursement for victims, monetary penalties, lifelong bans on trade and registration, and an injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
Hot Take: This case underscores the importance of thorough due diligence before investing in any scheme, especially in the unregulated world of cryptocurrencies. Investors must be cautious of promises of high returns and verify the legitimacy of investment opportunities.
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