US Regulator Files Charges Against Debiex Over Romance Scam
The US Commodity Futures Trading Commission (CFTC) has taken legal action against cryptocurrency exchange Debiex for an alleged $2.3 million romance scam. The CFTC announced the civil lawsuit on January 19, after filing for enforcement action in the US District Court for the District of Arizona.
Details of Debiex’s Alleged Romance Scam
According to the CFTC, Debiex posed as a crypto exchange offering US citizens access to digital asset trading. However, it was actually a fraudulent scheme targeting Asian Americans through a romance scam.
The CFTC describes Debiex’s operation as sophisticated and involving three groups of actors. The first group, called “solicitors,” established contact with potential victims on a US-based social media platform and gained their trust through friendship or romance.
The CFTC’s complaint alleges that Debiex’s officers and/or managers deceived potential customers to gain their trust and solicited them to open and fund trading accounts with Debiex.
The second group, known as “customer service,” managed trading accounts for Debiex’s customers. The final group, called “money mules,” provided digital wallets that Debiex used to receive and misappropriate users’ funds.
One of these money mules, Zhang Chéng Yáng (Zhang), had their digital wallet used to embezzle funds from at least one customer.
CFTC Seeks Penalties Against Debiex
The CFTC alleges that Debiex defrauded five Asian Americans out of $2.3 million through the romance scam. The regulator is now seeking compensation for the victims and recovery of the ill-gotten gains. Additionally, the CFTC aims to impose fines, trading restrictions, and obtain a court order preventing Debiex from future violations of regulations.
Hot Take: Bitcoin’s Recent Performance
In other news, Bitcoin has seen a 1.1% gain in the past day, reaching a value of $41,590. However, on a larger scale, Bitcoin has experienced a decline of 2.9% and 5.2% on the seven-day and 14-day charts, respectively.
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