CFTC has charged a Tennessee-based couple with organizing a $6 million fraudulent crypto investment scheme.
Michael and Amanda Griffis, between July 2022 and January 2023, operated the pyramid scheme ‘Blessings of God Through Crypto,’ which involved more than 100 participants.
According to investigators, the spouses used the connections of their real estate business to attract new wealthy victims. Among the victims were mortgage brokers and former Griffis clients.
“Despite the lack of trading or other relevant experience, the defendants successfully convinced more than 100 people to send them over $6 million to participate in the fraudulent commodity pool,” the CFTC said.
The defendants told investors that their funds would be used to trade futures contracts on digital assets, but no trade was ever executed.
They stored $4 million in personal crypto wallets, and more than $1 million was used to pay down debts and buy expensive items.
The Commission also charged the couple for failing to register with the agency.
The CFTC sought a permanent injunction against the Griffises from participating in trading activities, along with full restitution of the stolen assets. However, the regulator noted that restitution to victims may be hampered by the defendants’ lack of sufficient funds.
Earlier in July 2023, in Canada detained two teenagers for stealing $4.2 million in cryptocurrencies from a U.S. citizen.
In the same month, a New York court fined a man $50 million for alleged fraud involving multimillion-dollar investments in digital assets.