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A couple from Tennessee has been charged by the Commodity Futures Trading Commission (CFTC) for allegedly running a $6 million digital assets commodity pool scheme this week.
The U.S. derivatives market regulator has accused Michael and Amanda Griffis, owners of a real estate firm in Clarksville, of defrauding over 100 individuals nationwide. The couple is also alleged to have failed to register with the CFTC in relation to a multi-million dollar commodity pool scheme they managed from July 2022 to January 2023.
‘Blessings of God Thru Crypto’ Fraud
The CFTC’s complaint claims that Michael and Amanda Griffis attracted their colleagues and clients from their real estate business by presenting them with the chance to combine funds with others to trade digital asset commodity futures contracts.
Despite lacking any trading or relevant experience, the couple successfully persuaded more than 100 individuals to contribute over $6 million to a commodity pool named “Blessings of God Thru Crypto.”
As part of the operation, pool participants transferred over $4 million to the “Apex Trading Platform.” However, these funds were swiftly redirected to multiple digital wallets “outside the control” of the Griffises and are now deemed “beyond recovery.” The couple also misappropriated nearly $1 million of the pool funds to settle personal debts and acquire various items, including luxury jewelry and an all-terrain vehicle.
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Additionally, the remaining pool funds were misused by the Griffises to make Ponzi-like payments in an effort to prolong the scheme for as long as possible.
CFTC Statement
In a statement, Ian McGinley, Director of Enforcement, remarked,
“As alleged, the defendants promised pool participants a secure investment in digital asset futures contracts with significant profit potential. These promises were based on the trust that victims placed in the defendants. The defendants betrayed their pool participants and profited from that betrayal. Today’s filing underscores the CFTC’s enduring commitment to hold accountable those who exploit victims.”
The CFTC is seeking restitution for the defrauded pool participants, civil monetary penalties, and permanent bans on trading and registration. The agency has also requested a permanent injunction against any further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
However, the agency cautioned that victims might not be able to recover their lost funds due to the defendants potentially lacking sufficient assets.
Before this case, the CFTC 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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