The Commodity Futures Trading Commission (CFTC) has taken legal action against Debiex, exposing a complex romance fraud scheme that resulted in the misappropriation of $2.3 million, primarily targeting Asian American victims.
In a statement on Friday, the CFTC outlined the alleged involvement of Debiex in a deceptive online romance scam. The platform is accused of manipulating victims’ trust and diverting funds through misleading tactics, creating false impressions, and fostering friendly or romantic relationships to convince potential customers to open accounts.
Despite identifying only five victims over two years, the CFTC claims that Debiex managed to siphon over $2 million through this elaborate scheme.
The legal action seeks various remedies, including restitution for defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, trading bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations.
Debiex had promised customers that their funds would be invested in cryptocurrencies; however, the complaint alleges that these funds were misappropriated for personal gain.
The intersection of romance scams with the crypto world is a growing concern. In February 2022, the FBI issued a warning about the increasing number of romance scammers persuading individuals to send money for crypto investments.
A similar intersection occurred in a case involving Binance, where a Texas woman claimed the exchange was implicated in a scam that led to her losing $8 million to a man she met on Tinder. The court ruled in May 2023 that there was no evidence implicating Binance Holdings Ltd. in aiding and abetting the theft.
Highlighting the broader issue of scams in the crypto space, a recent report by the security app DeFi revealed that crypto users lost nearly $2 billion to scams, rug pulls, and hacks in 2023.
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