CFTC accuses pastor of shilling $6M crypto Ponzi to parishioners
The United States Commodity Futures Trading Commission has accused a pastor of promoting a $6 million crypto Ponzi scheme to 1,500 people, including those who attended his church in Washington state.
The CFTC announced on December 10 that it had filed a complaint against Franciere Obado Pinillo for alleged fraud and abuse of a multi-level marketing scheme.
In a complaint filed Dec. 9 in Spokane federal court, the CFTC alleges that Pinillo, a pastor at a Spanish church in Pasco, Washington, operated a trading platform that rewarded congregants and other social media users. -Performance” crypto business.
Source: CFTC
The regulator said that from November 1, 2021 to December 31, 2023, Pinillo was the CEO of Solanofi, Solano Partners Ltd. and Solano Capital Investments, which he said created the “Solano ecosystem” in which they did business. Bitcoin (BTC), Ether (ETH), Tether (USDT) and other cryptocurrencies on behalf of their clients.
According to the CFTC, Pinillo promised clients that they could earn up to 34.9 percent of their monthly profits through Solanofi, which allegedly used bots and other software for crypto trading.
Stock services for Bitcoin, Ether, Solana (SOL), USDT and Dogecoin (DOGE) are also offered with a service known as Solanofi 2.0 with “Guaranteed Profits for Customers”.
According to the scheme, charged by the CFTC, users were shown an online dashboard displaying a 15% referral fee to encourage others to join.
The CFTC alleged that no trading or stock services were conducted as promised. Source: CFTC
“These representations and statements were false,” the CFTC said in its complaint.
“There was no automated computer trading program, no customer accounts, no trades were made or profits made, and the defendant was misappropriating all digital and fictitious assets transferred by customers,” he added.
The CFTC said they were targeting “unsophisticated clients” who have little experience with digital asset transactions, commodity interest trading or involving digital assets.
Related: CFTC bags $17 billion in 2024, massive crypto enforcement
“Defendant's request was only in Spanish, which allowed him to abuse his trust as a pastor,” the CFTC wrote.
The regulator is seeking refunds to defrauded customers, forfeiture of all funds earned through the scheme, a trading ban and a permanent injunction.
Information for Pinillo's attorneys was not immediately available. Pinillo did not respond to a request for comment via social media.
Magazine: How to pick a winner in this bull run: Web3 Gamer
