The CFTC Takes Legal Action Against Fraudulent Crypto Scheme
The Commodity Futures Trading Commission (CFTC) has initiated legal proceedings against four individuals and their organization, Fundsz, for their involvement in a fraudulent scheme related to cryptocurrencies and precious metals trading. The defendants are accused of deceiving investors with promises of implausible returns based on a proprietary algorithm.
Key Points:
- Fundsz attracted customers by promising steady 3% weekly profits through cryptocurrency and precious metal trading.
- The defendants falsely associated Fundsz with charitable initiatives to capitalize on the appeal of contributing to worthy causes.
- The CFTC alleges that over 14,000 individuals were lured by fabricated weekly returns.
- A statutory restraining order has frozen the defendants’ assets, and a preliminary injunction hearing is scheduled for August 23.
- The CFTC seeks restitution, disgorgement of ill-gotten gains, civil monetary penalties, and a permanent injunction against further violations.
CFTC and SEC Crack Down on Crypto Industry
The legal action against Fundsz comes amidst an aggressive crackdown by the CFTC and the Securities and Exchange Commission (SEC) on the crypto industry. The regulators have taken enforcement action against major players in the market, including Binance, Kraken, and Nexo.
Hot Take:
The CFTC’s actions against fraudulent crypto schemes and unregistered exchanges demonstrate their commitment to protecting investors in the cryptocurrency market. With the increasing popularity and volatility of cryptocurrencies, it is crucial for regulators to maintain oversight and crack down on fraudulent practices to ensure the integrity of the industry.
By
By
By
By