CFTC Accuses Pastor of Running $6 Million Crypto Ponzi Scheme Among Congregants

U.S. Regulator Sues Pastor Accused of Operating $6 Million Crypto Ponzi Scheme

The United States Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Francier Obando Pinillo, a pastor from Washington state, accusing him of operating a massive crypto Ponzi scheme that scammed 1,500 individuals out of approximately $6 million. The CFTC alleges that Pinillo used his position as a religious leader to deceive and manipulate his congregation and others on social media into investing in his fake trading platform.

Multilevel Marketing Scheme

On December 10, the CFTC announced that it had filed a complaint against Pinillo for alleged fraud and misappropriation. According to the regulator’s allegations, Pinillo claimed to be the CEO of Solanofi, Solano Partners Ltd., and Solano Capital Investments, which he said operated a "Solanofi ecosystem" that enabled high-performance crypto trading. However, the CFTC claims that this was merely a ruse to scam unsuspecting investors out of their hard-earned money.

Promises of Unrealistic Returns

The complaint alleges that Pinillo promised customers monthly profits of up to 34.9% through Solanofi, which he claimed used advanced software for crypto trading. He also offered a staking service for popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and Dogecoin (DOGE) through his platform, Solanofi 2.0, which allegedly guaranteed profits to customers. To encourage others to join the scheme, Pinillo promised a 15% referral fee.

No Trading or Staking Service Existed

However, according to the CFTC’s allegations, no trading or staking service existed as promised. The regulator claims that Pinillo used the money from unsuspecting investors for his own personal gain, misappropriating all digital and fiat assets transferred by customers. Furthermore, the CFTC alleges that Pinillo’s solicitations were almost exclusively in Spanish, allowing him to abuse his position of trust as a pastor.

Targeting Unsophisticated Investors

The regulator claims that "unsophisticated customers" with little to no experience in digital asset transactions, commodity interest trading, or staking digital assets were targeted by Pinillo. This suggests that the pastor may have taken advantage of individuals who were unfamiliar with crypto investing and did not fully understand the risks involved.

CFTC’s Lawsuit

The CFTC is seeking restitution for defrauded customers, forfeiture of all funds generated through the scheme, a trading ban, and a permanent injunction against Pinillo. The regulator aims to bring an end to this massive Ponzi scheme and hold Pinillo accountable for his alleged actions.

Potential Consequences

If found guilty, Pinillo could face severe consequences, including significant fines and even imprisonment. Additionally, the CFTC’s lawsuit may serve as a warning to other crypto scammers who attempt to use their positions of trust to deceive and manipulate others into investing in fake schemes.

Protecting Yourself from Crypto Scams

To avoid falling victim to such scams, it is essential to be cautious when dealing with unsolicited investment opportunities. Always research the company or individual offering the opportunity thoroughly, and never invest more than you can afford to lose. Be wary of unrealistic promises of high returns and guaranteed profits.

Conclusion

The CFTC’s lawsuit against Pinillo highlights the importance of regulating the crypto industry and protecting investors from scams. As the use of cryptocurrencies continues to grow, it is crucial that regulators remain vigilant in policing the market for potential abuses.

What You Can Do to Protect Yourself

To stay safe while investing in cryptocurrencies:

Always research the company or individual offering an investment opportunity thoroughly
Be cautious of unsolicited investment offers
Never invest more than you can afford to lose
Be wary of unrealistic promises of high returns and guaranteed profits

Stay Informed, Stay Safe

By staying informed about crypto laws and regulations, you can make smart choices for your crypto ventures. To stay up-to-date with the latest news on crypto laws and guidelines, subscribe to our newsletter.

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