CFTC Charges Couple in Connection to Crypto Pool Scheme
Per the release, the couple was accused of orchestrating a deceptive scheme that defrauded more than 100 individuals throughout the United States. According to the complaint, the fraudulent activities conducted by the couple took place in six months, from July 2022 through January 2023.
Commodity Pool Scheme Targeted over 100 Individuals
During this period, the couple allegedly ran a multi-million dollar commodity pool scheme dubbed “Blessings of God Thru Crypto”, which offered tempting investment opportunities to unsuspecting individuals seeking financial growth.
Meanwhile, the modus operandi of the scheme was centered on enticing promises of high returns and minimized risks. Prospective investors were lured by the prospect of significant profits in the commodities market. With these seemingly attractive prospects, the couple managed to convince victims to participate in their venture. Eventually, they were able to raise over $6 million from customers, investors, and individuals.
Under regulatory requirements, individuals and entities engaging in commodity trading or pooling are obligated to register with the CFTC, thereby subjecting themselves to regulatory oversight. By neglecting to fulfill this crucial obligation, Michael and Amanda further compounded their actions with a violation of financial regulations.
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Must ReadHowever, the CFTC’s swift action in filing the complaint demonstrated the agency’s commitment to protecting investors from fraudulent schemes and ensuring compliance with financial regulations. Should they be found guilty, the Griffis will come off as one of the latest to face the wrath of American regulators.
Crypto Scam on the Rise
Fraudulent offerings is currently on the rise in the digital currency ecosystem in what appears as a complementary trend to the evolution of the broader industry. With the rise in the schemes, American regulators have been doubling their efforts to bring these bad actors to book.
One of the high profile cases is that of former Coinbase product manager Ishan Wahi who was charged for insider trading offenses. He was eventually sentenced to 2 years in prison in what appears as though he cut a deal with the United States Securities and Exchange Commission (SEC).