Odaily Planet Daily News The United States CFTC announced yesterday that it has filed a lawsuit in the U.S. District Court for the Central District of Florida, accusing four individuals and their unincorporated entity Fundsz of fraudulently soliciting users to invest in cryptocurrencies and precious metals.
Starting in October 2022, Fundsz allegedly solicited participants by claiming it would generate weekly returns of more than 3% using what it called a “proprietary algorithm” and some “cheat books” for trading cryptocurrencies and precious metals. According to the CFTC, it was claimed that a one-time payment of $2,500 to Fundsz was expected to grow to $1 million within four years.
Fundsz did not trade client funds and reported fictitious weekly returns to clients, the CFTC said. Fundsz has also been accused of falsely implying that it contributed to charitable causes.
The defendants — Rene Larralde of Melbourne, Fla., Juan Pablo Valcarce of West Melbourne, Fla., Brian Early of New Orleans, La., Alisha Ann Kingrey of Franklin, Arkansas, and Fundsz — received an ex parte A statutory restraining order, which freezes their assets, preserves records and appoints a temporary receiver. A hearing on the CFTC's preliminary injunction motion is scheduled for Aug. 23.
The CFTC also seeks compensation to defrauded investors, disgorgement of disgorgement, civil monetary penalties, permanent trading and registration injunctions, and permanent injunctions for further violations of the Commodity Exchange Act. (The Block)