CFTC accuses crypto platform Debiex of $2,3 million in fraud
The company’s managers appropriated the funds of the clients transferred to the trust management
22.01.2024 - 10:42
180
3 min
0
What’s new? The US Commodity Futures Trading Commission (CFTC) has charged digital asset platform Debiex with fraud. Unidentified individuals associated with the platform “cultivated friendly or romantic relationships with potential customers,” lied to gain trust, and then asked to open and fund trading accounts on the platform, the CFTC said in a statement. Since March 2022, five victims have been identified with total losses of about $2,3 million.
What else is known? The CFTC said the crypto platform targeted Asian Americans and contacted customers via social media to get them to open and fund trading accounts. Instead of using assets on behalf of users, Debiex misappropriated funds.
“The Debiex websites merely mimicked the features of a legitimate live trading platform and the ‘trading accounts’ on the websites were a complete ruse. No actual trading took place on the customers’ behalf,” the CFTC said.
The CFTC has filed a civil action against Debiex in the US District Court for the District of Arizona. Officials are seeking damages, compensatory and monetary penalties, and a trading ban.
The lawsuit names Zhang Cheng Yang, whose crypto wallet was used to store the misappropriated funds, as a defendant for damages.
CFTC proposes to require crypto exchanges to segregate their own and client assets
The initiative is designed to prevent situations similar to the FTX collapse
Earlier, the US Internal Revenue Service compiled its own ranking of the agency’s most high-profile cases for 2023, in which crypto scammers took 4 out of 10 positions. The list included the hacking of the Silk Road darknet marketplace and the collapse of the OneCoin crypto pyramid scheme.
In January, Taiwan police arrested David Pan, the founder of the local crypto exchange Ace Exchange, on suspicion of fraud involving digital assets worth 200 million Taiwanese dollars ($6,4 million).
Useful material?
Incidents
Reports about the hacking of the exchange with calls to withdraw assets began to spread on December 13
Dec 13, 2024
Crypto regulations
Stablecoins from issuer Circle will not be affected by the changes
Dec 12, 2024
Crypto regulations
The platform will launch after meeting the preconditions of the local exchange authority
Dec 9, 2024
Market
The $1,1 billion figure was reached after the bitcoin correction
Dec 6, 2024
Crypto regulations
By early January, all open positions and loans of local users will be closed and repaid automatically
Dec 5, 2024
Trends
According to the fund’s analysts, stablecoins with a peg to the US dollar will gain popularity as the main means of settlement
Dec 5, 2024