CFTC Files Lawsuit Against $11 Million Crypto Ponzi Scheme - Coindoo
CFTC Circle Society

CFTC Files Lawsuit Against $11 Million Crypto Ponzi Scheme

Editorial Team Avatar
Oct 17, 2019
2 min reading time

The United States Commodity Futures Trading Commission (CFTC) revealed that they submitted a civil enforcement action against Circle Society, a crypto Ponzi scheme.

Circle Society owner, David Gilbert Saffron, is facing the charges brought by CFTC, which include “fraudulent solicitation, misappropriation, and registration violations relating to an $11 million binary options scheme.”

The defendants in the case are accused of embezzling $11 million worth of bitcoin and USD from various citizens based in the States with the intention to “trade off-exchange binary options on foreign currencies and cryptocurrency pairs, among other things.”

“On October 3, 2019, the court issued an ex parte order freezing assets controlled by the defendants and preserving records. The court extended the restraining order on October 11, 2019. A hearing on the Commission’s Motion for Preliminary Injunction is scheduled for October 29, 2019,”- read the court order.

Heath P. Tarbert, Chairman of the CFTC, stated:

“Fraudulent schemes, like that alleged in this case, not only cheat innocent people out of their hard-earned money, but they threaten to undermine the responsible development of these new and innovative markets. America must be a leader in this space, and we will only succeed if these markets have integrity.”

The CFTC accused the shady exchange of conning 14 people into joining a pool managed by Circle Society, which is just a fraudulent created by Saffron that promised impossible returns of 300 per cent. The owner then kept the crypto funds from these users in his own personal crypto wallet and used it to pay new investors in order to convince them that the pool is legitimate.

“In its continuing litigation, the CFTC seeks full restitution to defrauded investors, 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 and Commission regulations,”- concluded the document.

Featured image: Insurance Journal

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