CFTC Sues Pastor Accused of Running $6 Million Crypto Ponzi Scheme
The United States Commodity Futures Trading Commission (CFTC) has filed a complaint against Francier Obando Pinillo, a pastor from Washington state, for allegedly operating a multi-million dollar crypto Ponzi scheme. The CFTC’s lawsuit accuses Pinillo of defrauding over 1,500 people, including some who attended his church in Pasco, Washington.
A Ponzi Scheme with a Twist
According to the CFTC’s complaint, Pinillo claimed to be the CEO of Solanofi, Solano Partners Ltd., and Solano Capital Investments. He told his congregants and others through social media that he had developed a "Solanofi ecosystem" in which he traded Bitcoin (BTC), Ether (ETH), Tether (USDT), and other cryptocurrencies on behalf of clients.
The Promises Were Too Good to Be True
Pinillo promised customers that they could earn monthly profits of up to 34.9% through Solanofi. He claimed that the platform used a bot and other software for crypto trading, but in reality, no such trading or staking service existed. The CFTC alleges that Pinillo used an online dashboard to display fake account statements and offered referral fees to encourage others to join the scheme.
Abusing Trust
The CFTC claims that Pinillo targeted "unsophisticated customers" who had little to no experience in digital asset transactions, commodity interest trading, or staking digital assets. The regulator notes that Pinillo’s solicitations were almost exclusively in Spanish, which allowed him to abuse his position of trust as a pastor.
The Scheme Unraveled
The CFTC alleges that there was no automated computer trading program, no customer accounts, and no trading taking place or profits generated through Solanofi. Instead, Pinillo misappropriated all digital and fiat assets customers transferred to the platform.
Consequences of the Scheme
The CFTC seeks restitution to defrauded customers, forfeiture of all funds generated through the scheme, a trading ban, and a permanent injunction against Pinillo. The regulator also notes that no information is available on Pinillo’s lawyers at this time.
A Growing Trend?
This case highlights a growing trend of crypto Ponzi schemes being operated by individuals who abuse their positions of trust to defraud unsuspecting investors. As the crypto market continues to grow, it is essential for regulators and law enforcement agencies to remain vigilant in identifying and prosecuting such schemes.
The Risks of Crypto Trading
While crypto trading can be a lucrative venture, it also comes with significant risks. The CFTC’s complaint against Pinillo serves as a reminder that unsophisticated investors must exercise extreme caution when investing in digital assets.
Protecting Yourself from Ponzi Schemes
To avoid falling victim to Ponzi schemes like the one alleged against Pinillo, investors should:
- Be wary of investments with unusually high returns or guaranteed profits
- Research investment opportunities thoroughly before committing funds
- Verify the existence and legitimacy of any trading platform or investment opportunity
- Never invest more than you can afford to lose
Conclusion
The CFTC’s lawsuit against Pinillo serves as a warning to individuals who seek to exploit unsuspecting investors through crypto Ponzi schemes. As the crypto market continues to grow, regulators must remain vigilant in protecting consumers from such scams.
References:
- CFTC Complaint Against Francier Obando Pinillo
- CFTC’s Guidance on Crypto Trading and Investing
