The Commodity Futures Trading Commission (CFTC) has taken legal action against a group of individuals and their organization, Fundsz, for their involvement in a deceptive scheme related to cryptocurrencies and precious metals trading. The CFTC alleges that Rene Larralde, Juan Pablo Valcarce, Brian Early, Alisha Ann Kingrey, and Fundsz enticed investors with unrealistic returns based on a purported “proprietary algorithm.”
According to the CFTC, the defendants misled investors by promising steady 3% weekly profits through cryptocurrency and precious metal trading. They falsely portrayed Fundsz as a profitable venture, claiming that a $2,500 investment could turn into $1 million in just 48 months. Additionally, the defendants capitalized on the allure of contributing to charitable causes by falsely linking Fundsz to such initiatives.
The CFTC claims that the defendants managed to attract over 14,000 individuals by fabricating weekly returns. However, the reality is that Fundsz did not actually engage in trading customer funds. The entire scheme appears to have been built on deceptive statements and fabricated profits.
Judge Wendy Berger of the U.S. District Court issued a unilateral statutory restraining order, which froze the defendants’ assets and appointed a temporary receiver. A preliminary injunction hearing is scheduled for August 23, where the CFTC seeks to obtain restitution for deceived investors, recover ill-gotten gains, impose financial penalties, impose trading and registration bans, and secure a lasting injunction against future infractions.
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This is not the first time the CFTC has taken action against individuals involved in fraudulent activities. In a separate case, Judge Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York issued a default judgment against Michael Ackerman, a resident of Alliance, Ohio. The judgment included a lasting injunction against Ackerman for his involvement in a crypto fraud scheme.
These cases highlight the importance of regulatory bodies like the CFTC in protecting investors from fraudulent schemes in the cryptocurrency and precious metals markets. Investors should exercise caution when presented with investment opportunities that promise unrealistic returns or make false claims. Conducting thorough due diligence and seeking advice from trusted financial professionals can help individuals avoid falling victim to such scams.
As the crypto industry continues to grow, it is crucial for regulators to remain vigilant and take swift action against those who seek to exploit unsuspecting investors. By holding individuals and organizations accountable for their deceptive practices, regulatory bodies can help maintain the integrity and trustworthiness of the market. Additionally, raising awareness about common scams and providing educational resources can empower individuals to make informed investment decisions and protect themselves from fraudulent schemes.
