Originally published on: December 11, 2024
The United States Commodity Futures Trading Commission has taken legal action against a pastor, alleging that he was involved in a fraudulent $6 million cryptocurrency Ponzi scheme that targeted 1,500 individuals, including members of his church in Washington state.
According to the CFTC, Francier Obando Pinillo, a pastor at a Spanish church in Pasco, Washington, has been accused of promoting a multilevel marketing scheme through social media platforms. Pinillo allegedly claimed to operate a trading platform that engaged in high-performance crypto trading and promised users monthly profits of up to 34.9%.
The complaint filed by the CFTC stated that Pinillo presented himself as the CEO of various entities and promoted a “Solano ecosystem” where he traded Bitcoin, Ether, Tether, and other cryptocurrencies on behalf of clients. The CFTC discovered that the trading and staking services promised by Pinillo did not exist, and he was misappropriating all assets transferred by customers.
The regulator emphasized that Pinillo targeted individuals with little experience in digital asset transactions, commodity interest trading, or staking digital assets, often using his position as a pastor to build trust with potential victims. The CFTC is seeking restitution for defrauded customers, forfeiture of all funds obtained through the scheme, a trading ban for Pinillo, and a permanent injunction.
As the case unfolds, it serves as a stark reminder of the risks associated with cryptocurrency investments and the importance of conducting thorough due diligence before participating in any investment opportunity, especially those promising high returns in a short period.
Stay informed and protected in the ever-evolving world of crypto regulations by subscribing to our newsletter, Law Decoded, which provides weekly updates on cryptocurrency laws and guidelines to help you navigate the crypto landscape with confidence. Subscribe today to make informed decisions for your crypto ventures.
