A recent case in Tennessee has shed light on the dangers of crypto fraud, with a couple being ordered to pay over $6.8 million for running a fake crypto pool. Michael and Amanda Griffis, real estate agents from Clarksville, lured investors into their scheme called “Blessings of God Thru Crypto” between 2021 and 2023. Under the guidance of a mysterious figure known as “Coach Wendy,” the couple managed to raise more than $6.5 million from approximately 145 investors.
The fraudulent activities of the Griffises came to light in July 2023 when the Commodity Futures Trading Commission (CFTC) initiated legal action against them. A US court in Tennessee recently issued a consent order requiring the couple to pay $5.5 million in restitution to victims, along with a civil monetary penalty of $1.35 million. This hefty penalty, totaling $6.8 million, also includes lifetime bans on the couple from commodity trading and CFTC registration.
The investigation revealed that the Griffises leveraged their real estate connections to attract unsuspecting investors. They falsely claimed that funds would be traded in crypto futures through the Apex Trading Platform under the supervision of “Coach Wendy.” However, it was later discovered that Apex was not a legitimate trading platform and had no local registration in the US. Despite efforts to track down “Coach Wendy,” the true identity of this individual remains unknown.
The couple diverted more than $4 million from the scheme to overseas accounts, while using the remaining funds to pay off personal debts and indulge in shopping sprees. Only around $855,000 was returned to investors in a Ponzi-like manner, where early investors were repaid using money from new investors.
This case serves as a stark reminder of the prevalence of crypto fraud and Ponzi schemes within the market. The CFTC warns the public to exercise caution when considering investment opportunities, especially those promising high returns with little risk. Recent cases involving fraudulent schemes targeting church communities and unsuspecting individuals highlight the need for vigilance and due diligence when investing in the crypto space.
Investors should be wary of red flags such as unregistered websites or promises that seem too good to be true. With the rapid movement of funds across borders in crypto markets, the chances of recovering lost investments are slim. The CFTC advises individuals to only engage with verified investment platforms and to be wary of any opportunities that appear suspicious.
In conclusion, the Tennessee couple’s case underscores the importance of conducting thorough research and due diligence before investing in any financial scheme, particularly in the volatile and high-risk world of cryptocurrency. Stay informed, stay vigilant, and always remember: if it sounds too good to be true, it probably is.