A Utah Man Settles with CFTC Over Bitcoin Commodity Pool Scheme
A Utah man, Jacob Orvidas, has settled with the Commodity Futures Trading Commission (CFTC) after soliciting investors in a $2 million bitcoin commodity pool scheme. According to the CFTC, Orvidas made false promises to investors through fake spreadsheets and lied about why he couldn’t pay out when he lost almost all the funds. As part of the settlement, Orvidas will pay $2 million back to investors and a $500,000 monetary penalty. He will also face a 10-year registration and trading ban. The CFTC alleges that Orvidas solicited four people to trade leveraged bitcoin in a commodity pool, falsely claiming that he would deliver equal profits based on each person’s contribution level.
Orvidas settled with the Securities and Exchange Commission (SEC) on the same day over securities law violations.
A Cautionary Tale
The CFTC’s Director of Enforcement, Ian McGinley, emphasized the agency’s commitment to protecting ordinary people from fraud in the digital asset market. He described Orvidas’ case as a simple and old-fashioned fraud. CFTC Commissioner Christy Goldsmith Romero also warned investors about fraud in the crypto space, advising them to check registration status and be cautious of unrealistic profit claims. According to Romero, the Jacob Orvidas case serves as a cautionary tale for investors.
Crypto scams continue to be a prevalent issue in the industry, highlighting the importance of regulatory oversight and investor education. It is crucial for individuals to conduct due diligence and exercise caution when investing in cryptocurrencies or participating in any form of investment scheme. As the crypto market grows, fraudsters are becoming increasingly sophisticated in their tactics. Therefore, it is essential for investors to stay informed, be skeptical of unrealistic promises, and seek advice from reputable sources before making any investment decisions in the crypto space.
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