CFTC Wins Fundsz Fraud Case, Court Orders Defendants to Pay Over $30 Million in Penalties
The U.S. Commodity Futures Trading Commission (CFTC) won its lawsuit against Fundsz, a digital asset and precious metals fraud scheme. The U.S. District Court for the Middle District of Florida entered a default judgment on Wednesday, ordering defendants Brian Early and Alisha Ann Kingrey to pay over $30 million in penalties. The court found that Early and Kingrey, as board members and moderators of the Fundsz entity and its Telegram group, made false representations regarding Fundsz's projected profits, past trading performance, and risk of loss. They also falsely claimed that investor funds would be traded using a "proprietary algorithm" and could be withdrawn with interest. The court further found that the two attempted to retract profit claims and eliminate Fundsz's social media presence after learning of the CFTC's investigation. Additionally, the court entered consent orders against two other defendants in the fraud case, Rene Larralde and Juan Pablo Valcarce.
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