CFTC Enforcement Actions

---

Date Filed: 05/24/2023 

Action: CFTC vs. David Carmona et al.

Causes of Action: 

1. Fraud by Deceptive Device or Contrivance

Case Notes: CFTC Charges Five Defendants with Fraudulent Digital Assets Trading Scheme

Pleading and Statement:   

· Complaint: David Carmona, et al.

· Commissioner Kristin Johnson Statement 

Date Filed: 04/28/2023 

Action: CFTC vs. Systematic Alpha Management, LLC  

Causes of Action: 

1. Fraud in Connection with Futures
2. Fraud by a Commodity Pool Operator and Commodity Trading Advisor
3. Inequitable Allocation of Orders 

Case Notes: CFTC Charges Commodity Trading Advisor, Commodity Pool Operator and its Owner with Fraudulently Allocating Trades

Pleading and Disposition:   

· Complaint: Systematic Alpha Management, LLC, et al.

· Order: Systematic Alpha Management, LLC, et al.

Date Filed: 04/27/2023 

Action: CFTC vs. Mirror Trading International Proprietary Limited  

Causes of Action: 

1. Fraud in Connection with Forex Contracts
2. Fraud by an AP of a CPO
3. Failure to Operate Commodity Pool as a Separate Legal Entity, Failure to Receive Funds in the Pool's Name, and Commingling of Pool Funds
4. Failure to Register as an AP of a CPO

Case Notes: Federal Court Orders South African CEO to Pay Over $3.4 Billion for Forex Fraud

Disposition:   

·  Order for Final Default Judgment: Cornelius Johannes Steynberg

Date Filed: 04/21/2023 

Action: CFTC vs. Bitfinmarket.com, Bit Block FXtrades et al.

Case Notes: CFTC Charges 14 Entities for Fraudulently Claiming to be Registered with the Agency

Pleadings:   

· Complaint: Betatradeoptions.com

· Complaint: Bitfinmarket.com

· Complaint: Bit Block FXtrades

· Complaint: Bit Trading

· Complaint: Cross Trade FX

· Complaint: Fast Option Subdivision

· Complaint: Garantitrademiness.com

· Complaint: Garantitrademinex.net

· Complaint: Instantearners247.com

· Complaint: Prime Finance Network

· Complaint: Sparkleswhite.com

· Complaint: TFX Trading

· Complaint: Trust Pay Market

· Complaint: Voltfxtrade 

Date Filed: 04/11/2023 

Action: CFTC vs. Rashawn Russell 

Causes of Action: 

1. Fraud

Case Notes: CFTC Charges New York Resident with Fraud and Misappropriation in Digital Assets Trading Scheme

Pleading:   

· Complaint: Rashawn Russell 

Date Filed: 03/27/2023 

Action: CFTC vs. Changpeng Zhao et al.

Causes of Action: 

1. Execution of Futures Transactions on an Unregistered Board of Trade 
2. Illegal Off-Exchange Commodity Options  
3. Failure to Register as a Futures Commission Merchant 
4. Failure to Register as a Designated Contract Market or Swap Execution Facility 
5. Failure to Diligently Supervise 
6. Failure to Implement Customer Information Program, and Failure to Implement Know Your Customer and Anti-Money Laundering Procedures 
7. Anti-Evasion 

Case Notes: CFTC Charges Binance and its Founder, Changpeng Zhao, with Willful Evasion of Federal Law and Operating an Illegal Digital Asset Derivatives Exchange

Pleading and Statement:   

· Complaint: Binance Holdings Limited

· Statement of Commissioner Kristin N. Johnson 

Date Filed: 02/28/2023 

Action: CFTC vs. Nishad Singh  

Causes of Action: 

1. Employment of Deceptive Devices and Misappropriation
2. Aiding and Abetting Fraud Committed By FTX, Alameda, and Bankman-Fried 

Case Notes: CFTC Charges FTX Co-Owner with Fraud by Misappropriation and Aiding and Abetting Fraud Related to Digital Asset Commodities

Pleading and Disposition:   

· Complaint: Nishad Singh

· Consent Order: Nishad Singh 

Date Filed: 02/16/2023 

Action: CFTC vs. Armen Temurian and Vista Network Technologies    

Causes of Action: 

1.  Employment of Deceptive Devices and Misappropriation 

Case Notes: CFTC Charges California-based Company and Its CEO with Fraudulent Solicitation and Misappropriation of Digital Asset Commodities

Pleading and Statement:   

· Complaint: Temurian

· Statement of Commissioner Kristin N. Johnson 

Date Filed: 01/10/2023 

Action: CFTC vs. Avraham Eisenberg  

Causes of Action: 

1. Use of a Manipulative or Deceptive Device
2. Manipulation and Attempted Manipulation of a Swap

Case Notes: CFTC Charges Avraham Eisenberg with Manipulative and Deceptive Scheme to Misappropriate Over $110 million from Mango Markets, a Digital Asset Exchange

Pleading and Disposition:   

· Complaint: Avraham Eisenberg

· Statement of Commissioner Kristin N. Johnson

· Statement of Commissioner Caroline D. Pham 

Date Filed: 12/21/2022 

Action: CFTC vs. Caroline Ellison and Zixiao “Gary” Wang 

Causes of Action: 

1. Fraud 
2. Fraudulent Misstatements of Material Fact and Material Omissions

Case Notes: CFTC Charges Alameda CEO and Alameda and FTX Co-Founder with Fraud in Action Against Sam Bankman-Fried and his Companies

Pleading and Disposition:   

· Complaint: FTX Trading, et al

· Consent Order: Caroline Ellison

· Consent Order: Zixiao “Gary” Wang

· Statement of Commissioner Summer K. Mersinger 

Date Filed: 07/18/2022 

Action: CFTC vs. John David McAfee and Jimmy Gale Watson

Causes of Action: 

1. Fraud and Manipulation by Deceptive Device or Contrivance
2. Price Manipulation

Case Notes: Federal Court Orders Texas Man to Pay Over $290,000 for Manipulative and Deceptive Digital Asset Pump-and-Dump Scheme 

Disposition: 

Consent Order: Jimmy Gale Watson, et al

Date Filed: 06/30/2022

Action: CFTC vs. Mirror Trading International Proprietary Limited, et al.

Causes of Action: 

1. Fraud in Connection with Forex
2. Fraud by a Commodity Pool Operator (CPO); Fraud by an Associated Person (AP) of a CPO
3. Failure to Operate Commodity Pool as a Separate Legal Entity, Failure to Receive Funds in the Pool’s Name, and Commingling of Pool Funds
4. Failure to Register as a CPO; Failure to Register as an AP of a CPO 

Case Notes: CFTC Charges South African Pool Operator and CEO with $1.7 Billion Fraud Involving Bitcoin 

Pleading:

Complaint: Mirror Trading International Limited, et al.

Date Filed: 06/02/2022

Action: CFTC vs. Gemini Trust Company, LLC

Causes of Action: 

1. False or Misleading Statements or Omissions to the Commission

Case Notes: CFTC Charges Gemini Trust Company for Making Material False or Misleading Statements and Omissions to the Commission  

Pleading: 

Complaint: Gemini Trust Company, LLC

Date Filed: 05/10/2022

Action: CFTC vs. Seneca Ventures, et al.

Causes of Action: 

1. Failure to Register as a CPO     
2. Fraud by a CPO    
3. Deceptive Scheme or Contrivances

Case Notes: CFTC Charges Oregon and Illinois Residents and Florida Company in $44 Million Misappropriation in Ongoing Digital Asset and Commodity Futures Fraud  

Pleading: 

Complaint: Seneca Ventures, et al.

Date Filed: 05/05/2022

Action: CFTC vs. HDR Global Trading Limited et al.

Case Notes: Federal Court Orders BitMEX’s Three Co-Founders to Pay a Total of $30 Million for Illegally Operating a Cryptocurrency Derivatives Trading Platform and Anti-Money Laundering Violations 

Disposition: 

Consent Order: Arthur Hayes

Consent Order: Benjamin Delo

Consent Order: Samuel Reed

Date Filed: 03/29/2022

Action: CFTC vs. Abner Alejandro Tinoco, et al.

Case Notes: Court Finds El Paso Man and His Firm Liable for Defrauding Forex and Cryptocurrency Clients of More Than $7.2 Million 

Disposition: 

Consent Order: Abner Alejandro Tinoco, et al.

Date Filed: 03/08/2022

Action: CFTC vs. Dwayne Golden, et al.

Causes of Action: 

1. Use of a Manipulative or Deceptive Device or Contrivance
2. Use of a Manipulative or Deceptive Device or Contrivance

Case Notes: CFTC Charges Four Operators for $44 Million Bitcoin Ponzi and Misappropriation Schemes

Pleading: 

Complaint: Dwayne Golden, et al.

Date Filed: 03/07/2022

Action: CFTC vs. Fintech Investment Group, Inc

Case Notes: Florida-Based Companies and Their Owner Settle Mid-Trial for $1.8 Million for Fraudulent Forex and Digital Asset Scheme 

Disposition: Order: Fintech Investment Group, Inc