CFTC Charges Crypto Exchange Debiex With Conducting ‘Romance Scam’

The U.S. Commodity Futures Trading Commission (CFTC) has lodged a complaint that Debiex, a cryptocurrency exchange service, defrauded customers of around $2.3 million.

According to an official CFTC announcement, it is alleged that Debiex officials went as far as to develop a misleading sense of trust with potential clients by propagating deceitful narratives, thereby creating a false sense of security.

These company representatives then reportedly persuaded these clients to deposit funds into Debiex-operated wallets for the promise of entering into cryptocurrency commodity trading.

The exchange stands accused of illicitly acquiring and misusing funds amounting to an estimated $2.3 million from roughly five clients starting from March 2022 to the present.

Central to the case is an individual by the name of Zhāng Chéng Yáng, who apparently used a specific digital wallet to misappropriate funds from at least one investor.

“Our Enforcement Division is devoted to seeking justice for harmed parties, eradicating fraudulent schemes, and ensuring offenders face suitable consequences for their fraudulent activities under the CEA’s anti-fraud regulations.”

Enforcement Director Ian McGinley

It is purported in the filed action that Debiex’s operations included the management of publicly available internet sites initiated in March 2022, which were accessible to U.S. residents.

The report suggests that these online platforms were used by the exchange to specifically target individuals of Asian ancestry in the United States.

The allegations intensify with the claim that Debiex irresponsibly handled customer’s cryptocurrencies, blatantly diverging from their initial commitment of utilizing these assets for trading purposes. Customers were ostensibly unaware that the websites were merely simulating an authentic trading environment, and their “trading accounts” were just a smokescreen. The CFTC is of the opinion that no actual trading on the customers’ behalf took place.

The prevalence of cryptocurrency romance scams is surging, drawing attention from the Federal Bureau of Investigation (FBI). In a cautionary notice issued shortly before Valentine’s Day last year, the FBI highlighted the disturbing rise in romance scams on the internet, where swindlers manipulate victims to send funds under the pretense of trading or investing in digital currencies.

FBI Jacksonville’s Special Agent in Charge Sherri E. Onks has stressed the unfortunate reality that, though online dating is more prevalent, it also paves the way for fraudsters to exploit individuals. She also advised those engaging in online relationships to be vigilant about the potential for abuse and to avoid transferring money to individuals they have not met face-to-face.

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