‘Pig Butchering’ Crypto Scheme Uncovered: Debiex Charged by CFTC for Defrauding Investors
The Commodity Futures Trading Commission (CFTC) has charged digital asset platform Debiex for engaging in a deceptive scheme known as “pig butchering,” which resulted in the loss of $2.3 million from investors.
On Firday, the CFTC filed a complaint against Debiex and Zhāng Chéng Yáng in the U.S. District Court for the District of Arizona.
According to the CFTC, individuals associated with Debiex employed a tactic commonly used in romance scams.
They developed friendly or romantic relationships with potential customers, deceiving them to gain their trust.
Subsequently, they persuaded these individuals to open and finance trading accounts with Debiex.
The solicitors claimed to possess knowledge that could generate substantial profits in cryptocurrencies like Bitcoin and Ether, as stated in the CFTC’s complaint.
Regulators allege that Debiex misappropriated approximately $2.3 million from five customers as part of their fraudulent scheme.
The CFTC is seeking restitution for the affected customers, as well as disgorgement, monetary penalties, trading bans, and a permanent injunction.
“This case is an example of the Division of Enforcement’s core mission—bringing justice for victims, rooting out misconduct, and holding accountable those who violate the anti-fraud provisions of the CEA,” CFTC Director of Enforcement Ian McGinley said in a statement.
The CFTC revealed that Debiex specifically targeted Asian Americans, using U.S.-based social media platforms to entice them into opening and funding trading accounts.
Instead of utilizing the funds on behalf of the customers, as promised, Debiex misappropriated their digital assets.
The CFTC stated that the Debiex websites were designed to resemble a legitimate live trading platform, but
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