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4 Individuals Charged for Alleged Crypto and Precious Metal Scam

CFTC charges four individuals and their entity for alleged crypto and precious metal scam, attracting over 14,000 customers with promises of high returns.

The US Commodity Futures Trading Commission (CFTC) has taken legal action against four individuals and their unincorporated entity, accusing them of orchestrating a fraudulent scheme involving both precious metals and digital assets. The alleged scam, which claimed to offer substantial returns, managed to attract more than 14,000 customers at its peak.

Unveiling the Allegations

The CFTC revealed that it had recently filed (1) a complaint against Rene Larralde, Brian Early, Alisha Ann Kingrey, and Juan Pablo Valcarce, along with their unincorporated entity known as Fundsz. The allegations center around fraudulent solicitation, where the accused individuals purportedly engaged in soliciting clients under the pretense of trading in cryptocurrencies and precious metals.

Promises of Lucrative Returns

According to the complaint, the fraudulent project operated from October 2020 up until the present. It enticed potential investors with promises of more than 3% returns on a weekly basis. These returns were supposedly generated through the use of a "proprietary algorithm" for trading, accompanied by a mysterious "secret sauce."

Intriguing Historical Performance Claims

The accused quartet claimed to have an impressive track record of timely and accurate payments spanning seven years. Furthermore, they asserted that a modest one-time investment of $2,500 in their project could transform into an astounding $1 million within just 48 months, all without requiring any additional contributions.

Parallel Charitable Endeavors

In an attempt to bolster their credibility, the individuals behind Fundsz stated that they were concurrently running a charitable organization. They asserted that portions of the contributions made to Fundsz were allocated to support various initiatives, including environmental causes like ocean cleaning, as well as efforts related to health, education, and humanitarianism.

Illusory Gains and CFTC's Response

Despite managing to garner a significant number of customers, reaching over 14,000 at its zenith, the CFTC contended that Fundsz's promises were nothing more than a façade. It alleged that the defendants had never actually conducted any trading activities, and all reported gains for clients were fictional. The CFTC's Director of Enforcement, Ian McGinley, cautioned potential investors against such schemes, emphasizing that if an opportunity sounds too good to be true, it likely is.

Ensuring Market Integrity

The CFTC's move to take legal action against the accused parties underscores the ongoing efforts to safeguard the integrity of the cryptocurrency and precious metals markets. While tactics may evolve and adapt, the regulatory body remains steadfast in its commitment to preventing fraudulent activities and holding wrongdoers accountable.