The CFTC has filed charges against two parties on Ponzi allegations involving crypto, forex, and over $500,000 of defrauded funds.
The Commodity Futures Trading Commission (CFTC) has filed charges against a Colorado native and associated investment company on fraud charges. Denver local Breonna Clark, along with Colorado-based Venture Capital Investments Ltd., face civil action from the CFTC for defrauding investors, the agency said in a statement on Feb. 14. The pair also faces charges for not achieving registration with the government agency.
The accused harnessed crypto and forex to deceive investors
According to the CFTC’s charges, Clark and Venture Capital Investments claimed to manage a forex and cryptocurrency trading pool, baiting United States participants into involvement with hopes of financial gain.
Through falsely stated experience and financial credentials, the accused lured roughly seventy-two people into the scheme, amassing $534,829 in total, the CFTC’s allegations stated. On top of the initial deception, the defendants also allegedly provided participants with fake documents showing trading gains and progress.
The defendants spent most of investors money on personal gain
Instead of putting investors’ money toward trading activities, Clark and Venture Capital Investments allegedly spent $418,000 of the collected money on unrelated purchases, including a luxury car, as well as dishing out “Ponzi-type payments” to some of the entities involved in the trading pool.
Detailing its upcoming actions, the CFTC noted:
“In its litigation against the defendants, the CFTC seeks restitution to defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against future violations of the Commodity Exchange Act, as charged.”
The crypto space has seen a slew of legal actions over the past several months. Perhaps topping the list is Tether and its fight against three lawsuits, which the stablecoin company recently saw condensed into a single suit.
Cointelegraph reached out to the CFTC for additional details but received no response as of press time. This article will be updated accordingly should a response come in.
Source: Cointelegraph https://cointelegraph.com/