The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against a Washington-based pastor, accusing him of promoting a crypto Ponzi scheme that defrauded 1,500 people, including some of his congregants.
According to the CFTC’s complaint, filed on December 10, Francier Obando Pinillo, a pastor at a Spanish-speaking church in Washington, used his position of trust to lure people into a fraudulent crypto trading platform.
The CFTC alleges that the scheme raised $6 million from unsuspecting investors.
EXPLORE: DeFi Renaissance Day Sweeps Altcoin Season: Swell Crypto Blasts +23% Overnight After Binance Listing
Pinillo Claimed to Operate Trading Platform
Between November 2021 and December 2023, Pinillo claimed to operate a trading platform that generated “high-performance” crypto trading rewards for users, promising returns of up to 34.9% per month.
Pinillo allegedly told investors that he was the CEO of multiple entities, including Solanofi, Solano Partners Ltd., and Solano Capital Investments, which he claimed developed the “Solano ecosystem.”
He also stated that the platform traded popular cryptocurrencies like Bitcoin (BTC), Ether (ETH), and Tether (USDT) on behalf of clients.
As part of the scam, Pinillo offered a staking service for various cryptocurrencies, including Bitcoin, Ether, Solana (SOL), and Dogecoin (DOGE), through Solanofi 2.0.
According to the CFTC’s complaint, he falsely promised guaranteed profits through the service. Users were shown fraudulent online dashboards displaying fake account statements showing inflated balances and profits, which were used to recruit additional investors.
Pinillo offered a 15% referral fee for those who brought in new members to further incentivize participation.
The CFTC has stated that these claims were entirely false. The regulator asserts that there was no automated trading system, no actual trading taking place, and no customer accounts.
.@CFTC Charges Washington State Pastor with Fraud, Misappropriation in Multilevel Marketing Scheme Targeting Hispanic Americans: https://t.co/duI1GEzwoA
— CFTC (@CFTC) December 10, 2024
Instead, Pinillo allegedly misappropriated all the funds invested by customers, both in digital and fiat currencies.
The CFTC also pointed out that Pinillo specifically targeted “unsophisticated customers,” many of whom had little to no experience in digital asset trading or commodity investments.
Additionally, the regulator highlighted that the scam’s marketing was conducted almost exclusively in Spanish, taking advantage of Pinillo’s trust as a pastor to exploit his followers.
The CFTC is seeking restitution for the defrauded customers, the forfeiture of all funds obtained through the scheme, and a permanent trading ban for Pinillo.
EXPLORE: Donald Trump Picks Crypto Ally Paul Atkins As Next SEC Chair – 99Bitcoins
CFTC Earns $17.1 Billion from Enforcement Actions
The U.S. Commodity Futures Trading Commission (CFTC) announced a record-breaking $17.1 billion in financial relief for fiscal year 2024, largely driven by major cryptocurrency enforcement actions.
On December 5, the agency disclosed that the total included $2.6 billion in civil monetary penalties and $14.5 billion in disgorgement and restitution.
Most of the recovery came from the CFTC’s enforcement against the collapsed crypto exchange FTX, which filed for bankruptcy in November 2022.
The FTX case alone contributed $12.7 billion, setting a new record for the CFTC. The case targeted FTX, its sister company Alameda Research, and key figures such as founder Sam Bankman-Fried.
The settlement includes $8.7 billion in restitution to victims and $4 billion in disgorgement. Bankman-Fried was sentenced to 25 years in prison in March, though the CFTC noted that related legal proceedings are ongoing.
EXPLORE: Crypto Enforcement is A Multi-Billion Earner for the CFTC
Join The 99Bitcoins News Discord Here For The Latest Market Updates
The post CFTC Sues Pastor for Promoting $6 Million Crypto Ponzi Scheme to 1,500 Investors appeared first on 99Bitcoins.
