CFTC sued five people for fraud at Bitcoin trade services

CFTC sued five people for fraud at Bitcoin trade services

The Commodities Futures Trading Commission (CFTC) sued five people for faithful advertising for Bitcoin and crypto trade services and thus cheated on unsuspecting investors.

According to the CFTC, the accused were primarily aimed at Spanish -speaking users.

The majority of the victims came from Spanish -speaking communities

The CFTC claimed that five people - David Carmona, Juan Arellano Para, Moses Valdez, David Brend and Marco A. Ruiz Ochoa - asked for funds from customers to help them deal with Bitcoin and other cryptocurrencies, but ultimately disrupted the funds of the users.

The accused jointly led a company called IcomTech, which was supposedly a crypto trade company. According to the CFTC, IComTech stated that customers would receive 0.9 % or 2.8 % of daily returns from the crypto trade between 2018 and 2019. The fraudulent system also promised to double customers between four and eight months.

The regulatory authority, however, claimed that IcomTech and the defendants mentioned had not used the funds obtained for the Bitcoin or crypto trading, nor did the system comply with the promises mentioned above.

The CFTC also explained that the IComTech agents had requested funds worth "hundreds of thousands of dollars" of over 170 people in the United States and other countries. In addition, most customers came from Spanish -speaking communities.

In addition to the enforcement action by the CFTC, the US public prosecutor's office for the southern district of New York (SDNY) in October 2022 in connection with the fraudulent company IComTech also accused the five defendants for transfer fraud.

cftc is not more crypto -friendly than the sec

The latest enforcement measure takes place shortly after the CFTC has registered its highest Bitcoin fraud with a penalty fee of $ 3.4 billion. In this case, it was about a South African CEO who operated a non -registered raw material pool to ask for Bitcoin from humans, and also misappropriate customer money.

Meanwhile, CFTC commissioner Christy Goldsmith Romero recently said that it was impossible to monitor the entire fraud in the area of ​​cryptocurrencies as there was a lot. According to Romero, the portfolio of the agency included 20 % crypto cases, including the lawsuits against the crypto giant Binance and the bankrupt FTX.

The CFTC commissioner also explained that the regulatory authority should not be regarded as a "friendly regulatory authority" to the cryptoscut, compared to the Securities and Exchange Commission (SEC), which has recently been pursuing a more aggressive approach to the industry.

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