A Tennessee couple was charged for operating a $6 million digital assets commodity pool scheme by the Commodity Futures Trading Commission (CFTC) this week.
The United States derivatives market regulator charged the owners of a Clarksville real estate company, Michael and Amanda Griffis, for allegedly defrauding more than 100 people across the country. The couple was also accused of failing to register with the CFTC in connection with a multi-million dollar commodity pool scheme they operated between July 2022 and January 2023.
‘Blessings of God Thru Crypto’ Fraud
The CFTC’s complaint alleged that Michael and Amanda Griffis lured their colleagues and customers of their real estate business by offering them the opportunity to pool funds with others to trade digital asset commodity futures contracts.
The couple did not have any trading or other relevant experience but managed to convince over 100 individuals to send them more than $6 million to participate in a commodity pool called “Blessings of God Thru Crypto.”
As part of the scheme, the pool participants sent more than $4 million in funds to the “Apex Trading Platform.” However, the funds were instead quickly transferred to several digital wallets “outside the control” of the Griffises and are now “beyond recovery.” The couple also misappropriated nearly $1 million of pool funds to pay their debts and purchase various items, including expensive jewelry and an all-terrain vehicle.
Meanwhile, the remainder of pool funds were misappropriated by the Griffises to issue Ponzi-like payments in an attempt to carry on the scheme for as long as possible.
CFTC Statement
In a statement, Director of Enforcement Ian McGinley said,
“As alleged, the defendants promised pool participants a safe investment in digital asset futures contracts with huge profit potential. The promises were underpinned by the trust the victims placed in the defendants. The defendants betrayed their pool participants, and they profited from that betrayal. Today’s filing reinforces the CFTC’s long-standing commitment to hold accountable those who take advantage of victims.”
The CFTC has sought restitution to defrauded pool participants, civil monetary penalties, and permanent trading and registration bans. In its complaint, the agency also requested the imposition of a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
The agency, however, warned that the victims may not be able to recover the lost funds because the defendants may not have sufficient assets.
Prior to this case, the CFTC had charged William Koo Ichioka for allegedly defrauding investors of $21 million by claiming to be a digital asset and foreign exchange (forex) trader a month ago.
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