Not all actors in the cryptocurrency markets are striving to build the future. A significant portion of them is chasing easy wealth, and most of them are willing to engage in any kind of fraud to achieve it. Although the US currently lacks comprehensive crypto regulations, the laws regarding fraud also apply to crypto. It was announced that a new lawsuit has just been filed.
Last Minute Crypto Lawsuit
The Commodity Futures Trading Commission (CFTC) today announced that it has filed a new lawsuit against crypto fraudsters in the US Middle District Court of Florida. On August 2nd, Judge Wendy Berger of the US District Court signed a legal restraining order that freezes the defendants’ assets, preserves records, and appoints a temporary receiver. A hearing on CFTC’s motion for a preliminary injunction is scheduled for August 23rd.
In its ongoing lawsuit, the CFTC is seeking compensation for defrauded investors, restitution of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA).
Executive Director Ian McGinley said:
“The CFTC continues to root out individuals who defraud customers in the cryptocurrency and precious metals markets. While the products they claim to trade and the methods they use to lure victims (in this case, through social media) may have changed, the adage ‘if something sounds too good to be true, it probably is’ remains as valid as ever.”
Beware of Crypto Scammers
According to the complaint, from around October 2020 to the present, the defendants promised weekly gains of over 3% using a “proprietary algorithm” for the trading of Fundsz’s cryptocurrencies and precious metals. The defendants also claimed to have made “timely and accurate payments” for seven years and made allegations that a one-time contribution of $2,500 to Fundsz could grow to $1 million within 48 months without any additional deposits. The complaint also alleges that the defendants misrepresented Fundsz as having a charitable purpose, using the slogan “Fundsz For Your Cause,” and falsely implying that contributing to Fundsz would support clean water, humanitarian aid, health, education, and disaster relief efforts.
The successful presentation, in which the defendants claimed to have more than 14,000 participants, turned out to be a scam. However, according to the complaint, Fundsz never actually traded with customer funds, and the defendants fabricated weekly returns to report to customers, making their gains imaginary.
The CFTC warns that orders requiring the repayment of funds to victims may not always result in the recovery of the lost money because the perpetrators may not have sufficient funds or assets.
THEY SHOULD ALSO GO AFTER CMB OR COIN MARKET BULL. I ALONE HAVE HAD 100K SENT TO THEM AND NEVER ONCE WITHDRAW A CENT B/C I WAS WAITING TO START DRAWING. BUT THAT DAY NEVER CAME. THEY SCAMMED US AND CLOSE DOWN ALL SERVERS. PLEASE DO A PIECE ON CMB