Global Trading Club Operators Facing Lawsuit Filed by CFTC

The Commodity Futures and Trading Commission (CFTC) has recently filed a lawsuit in the US District Court against four individuals affiliated with the "Global Trading Club" for soliciting customers' money with a bitcoin investment scam. 

15 September 2020 | AtoZ Markets – Cryptocurrencies are complex, confusing for new users, and lightly regulated, making them an ideal target for scammers. Due to growing global unrest for COVID-19, crypto fraud has gained unprecedented power. Tighter crypto regulations could potentially mitigate the effects of fraud in the long run. But as long as cryptocurrency scams continue to emerge in space, investors and traders need to be vigilant.

CFTC Files Lawsuit Against Four Global Trading Club Individuals 

CFTC recently announced that it had filed a lawsuit in a US court against four individuals who have stolen funds from victims under the Bitcoin investment scheme. Those individuals scammed investors through Global Trading Club (GTC), a bitcoin trading business claiming to increase customer deposits. They also fraudulently solicited $989,000 from 27 different clients. Three individuals from Texas and one from Florida are listed as defendants. They are:

  • Mayco Alexis Maldonado Garcia (Texas residents)
  • Cesar Castaneda (Texas residents)
  • Rodrigo Jose Castro Molina (Texas residents)
  • Joel Castaneda Garcia (Florida residents).

The complaint alleges that the defendants made false statements to customers from August 2016 to October 2017. Defendants posted a misleading transaction statement to show that customers were making a lot of money from their trading schemes, but they didn't make it, the CFTC said.

The defendants business GTC, employs "master traders" and trading robots to trade Bitcoin 24/7 for their clients. Defendants further falsely stated that the customer's revenue would increase based on the deposit amount. Most crypto seminars of GTC targeted individuals who spoke Korean and Spanish.

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"The CFTC seeks disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against further violations of the Commodity Exchange Act and the Commission's regulations," the CFTC said in a statement.

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