The Commodity Futures Trading Commission (CFTC) has imposed charges on the Fundsz Scheme after finding them guilty of engaging in fraudulent activities involving cryptocurrencies and valuable metals trading.
CFTC vs Fundsz Crypto Scheme Case Background
According to the commission, Rene Larralde, Juan Pablo, Alisha Ann Kinggrey, and Brian Early are the defendants. They have been claimed to lure clients by telling them that they will be compensating them 3% on a weekly basis of the total cryptocurrencies traded as well as the precious metals.
The defendants also went ahead and deceived the clients, telling them that investing their money with them could lead to increased rates of growth. Charity work was also part of the lies told, and they managed to paint the Fundsz Scheme as a beneficial part of society.
The CFTC also claims that the scheme took advantage of 14000 individuals, and they did this by fabricating evidence of a large sum of weekly profit. The defendants never took part in any of the trades. The judge ordered their assets to be frozen while a temporary receiver is deployed to keep them.
Another hearing for preliminary injunction will take place on August 23rd.
The Role Of CFTC In Promoting Justice And Equity In The Cryptocurrency Market
With the above case developing, it just goes to show how the CFTC is committed to ensure the cryptocurrency world runs smoothly. It is therefore important for any investor to do his research and homework before starting out to trade. Several customer service lines are at the disposal of the investors and this helps to avoid engagement in fraudulent activities.
Examples of these service lines include the Precious Metals Fraud Advisory. Their work is to give investors information concerning fraud that involves precious minerals such as gold. Confirming a company’s registration status should also be done. This can be done through the NFA BASIC.
Together with the SEC, CFTC is bound to make improvements within the cryptocurrency field.