CFTC Files Lawsuit Against Nevada-based Circle Society

Commodity Futures Trading Commission CFTC filed a lawsuit against Circle Society for misappropriating $11 million worth BTC.

October 17, 2019, | AtoZ MarketsUS CFTC announced the filing of a civil enforcement action in the US District Court for the Nevada District. It charged David Gilbert Saffron of Las Vegas, Nevada, and Circle Society Corp., a Nevada corporation with fraudulent solicitation, embezzlement, and registration violations. It related to an $ 11 million binary options scheme Saffron operated by Circle Society. The accusation was filed on Monday, September 30, 2019.

CFTC Lawsuit Circle Society

On October 3, 2019, the court announced an ex parte order freezing the assets controlled by the defendants and preserving records. The court expanded the restraining order on October 11, 2019. A hearing on the Commission’s preliminary injunction is scheduled for October 29, 2019.

“The digital assets and other commodities of the 21st century are very promising for our economy,” said CFTC President Heath P. Tarbert. Fraudulent schemes, such as the one in this matter, deceive innocent people of their hard-earned money. And it also threatens to weaken the responsible development of these new and innovative markets. America must be a leader in this area, and we will only succeed if these markets are healthy.

Circle Society Cryptocurrency Scam

The complaint testifies that, from at least December 2017 until today, the defendants have fraudulently solicited. And they also accepted at least $ 11 million worth of bitcoins and US dollars. It is from individuals in the United States to trade off-exchange binary options on foreign currencies (Forex) and cryptocurrency pairs, among other things. 

According to the accusation, the defendants fraudulently solicited funds from at least fourteen members of the public. It was to engage in a pool operated by Circle Society. Saffron created and used an entity to perpetrate its fraud. That was for making false allegations of Saffron commercial expertise and guaranteeing rates of return of up to 300%. Rather than using pooled funds to negotiate binary options contracts as promised, the defendants embezzled funds. It includes retaining funds from participants in Saffron’s personal electronic cryptocurrency wallet and using funds to pay other participants, like a Ponzi scheme. The defendants then lied to the participants to conceal their misappropriation.

As part of its ongoing litigation, the CFTC is demanding full restitution to defrauded investors, disgorgement of ill-gotten gains. It is also demanding civil monetary penalties, permanent bans on registration and trading. And It wants a permanent injunction against future violations of the law. The CFTC warns victims that restitution orders may not result in the recovery of lost money. Because offenders may not have enough funds or assets.

The CFTC appreciates the assistance of the Nevada District Attorney’s Office and the Secretary of State of North Carolina’s Securities Division. And it also appreciates the Federal Bureau of Investigation Field Office in Los Angeles. The law enforcement staff responsible for this case are Danielle Karst, Timothy J. Mulreany, George H. Malas, Hillary Van Tassel, and Paul G. Hayeck.

Think we missed something? Let us know in the comments section below. 


Share Your Opinion, Write a Comment