CFTC Accuses Tennessee Couple of Crypto Fraud Scheme
CFTC Lawsuit Against Tennessee Couple
The Commodity Futures Trading Commission (CFTC) has taken legal action against Michael and Amanda Griffis, Tennessee-based real estate business owners, accusing them of orchestrating a fraudulent crypto scheme. Allegedly, the couple swindled over 100 individuals out of more than $6 million through a deceptive digital asset commodity pool.
Details of the Fraudulent Scheme
Operating under the name “Blessings of God Thru Crypto,” the scheme promised investors significant returns by speculating on the future value of cryptocurrencies. The Griffises assured investors that their funds would be securely managed and used for trading crypto futures on a platform known as ‘Apex Trading Platform.’ This strategy was supposedly guided by an enigmatic figure referred to as “Coach Wendy.”
Misuse of Investor Funds
The CFTC claims the couple leveraged professional relationships to attract victims, improperly mixing the commodity pool funds with their personal finances. Investor capital was funneled into Michael Griffis’ account, converted into digital assets like Bitcoin and Tether, and moved to the Apex Trading Platform for purported trading activities.
Ponzi Scheme Allegations
The operation resembled a classic Ponzi scheme, where approximately $855,000 was paid out to select investors to sustain the illusion of successful trading. This payout strategy, according to the CFTC, was merely to perpetuate a facade of legitimacy.
Legal Actions and Implications
The lawsuit seeks various forms of redress, including compensation for defrauded investors, financial penalties, and permanent bans on trading and registration for the Griffises. The CFTC aims to enforce compliance with the Commodity Exchange Act and its regulations.
Lessons on Crypto Investments
This case underscores the risks associated with the largely unregulated cryptocurrency market. The CFTC's actions emphasize the importance of conducting thorough due diligence before engaging in investment opportunities, especially those offering excessively high returns.
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