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The Commodities Futures Trading Commission (CFTC) charged a Tennessee couple with defrauding more than 100 people who invested more than $6 million in an investment scheme called ‘Blessings of God Thru Crypt.’
Michael and Amanda Griffis, owners of a Clarksville property company, promised investors high returns from the scheme that was purported to trade digital asset commodity futures contracts. Despite having no trading or other relevant experience, they convinced colleagues and customers of their property business to part with more than $6 million, the CFTC said.
The CFTC charged husband and wife realtors of Tennessee for operating a $6M digital assets commodity pool scheme. Learn more: https://t.co/pPq9hV8qeU
— CFTC (@CFTC) July 25, 2023
According to the U.S. derivatives markets watchdog, the couple reached out to individuals connected to their real estate business, including mortgage brokers and former customers, and convinced them to pool their funds for the supposed investment opportunity.
The victims were assured that their funds would be safe and profitably traded on the “Apex Trading Platform” with guidance from an individual known only as “Coach Wendy.”
CFTC Says Funds Used for Personal Expenses
The CFTC alleges that the Griffis’ never conducted any trades and instead misused the pooled funds for personal expenses and to perpetuate the scheme. More than $4 million was transferred to digital wallets outside the Griffis’ control, making it nearly impossible to recover.
Additionally, over $1 million was misappropriated to pay off personal debts, buy expensive items such as jewelry, and even pay college tuition and purchase an all-terrain vehicle.
The defendants’ actions resembled a Ponzi-like scheme as they used some of the pooled funds to make payments to early investors, creating the illusion of profitability and luring in new victims.
As such, the CFTC is seeking justice for the victims of this scheme and has taken legal action against the Griffis couple. The complaint seeks restitution to compensate the defrauded pool participants, civil monetary penalties, and permanent trading and registration bans for the defendants.
The regulator said that it is committed to holding those who take advantage of innocent victims accountable for their actions. The CFTC Director of Enforcement, Ian McGinley said:
“The defendants betrayed their pool participants, and they profited from that betrayal. Today’s filing reinforces the CFTC’s long-standing commitment to hold accountable those who take advantage of victims.”
However, the CFTC cautioned that obtaining full restitution for the victims might be challenging, given the possibility that the wrongdoers lack sufficient funds or assets to repay their victims.
Impact of CFTC Lawsuit on the Defendants
If found guilty, the Griffis couple could face severe consequences, including permanent bans from participating in any future transactions involving commodity interests. Additionally, the court may impose civil penalties against them to further deter fraudulent activities.
The alleged “Blessings of God Thru Crypto” scheme highlights the importance of exercising caution and due diligence when considering investment opportunities, especially in the volatile and rapidly evolving world of digital assets.
The CFTC’s actions serve as a reminder that authorities are actively monitoring and prosecuting fraudulent activities in the financial markets, aiming to protect innocent investors from falling victim to such scams.
It also emphasizes the need for investors to verify the credentials and track record of individuals offering investment opportunities, regardless of their professional backgrounds.
As the legal proceedings unfold, the outcome will determine the fate of the defendants and provide clarity on the accountability of those who engage in fraudulent schemes.
For now, potential investors are reminded to exercise caution and conduct thorough research before committing their hard-earned money to any investment opportunity.
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