Tennessee Couple Fined $7 Million in Blessings Thru Crypto Fraud Case

Crypto Fraud Scheme: Tennessee Couple Fined $7 Million

Key Points:

  • Tennessee couple fined in crypto trading fraud.
  • $7 million in penalties and restitution.
  • No direct impact on major cryptocurrencies.

Michael and Amanda Griffis from Tennessee have been ordered to pay nearly $7 million for a fraudulent crypto scheme called “Blessings Thru Crypto” by the U.S. District Court.

The event highlights increasing regulatory scrutiny on crypto-related fraud, with the CFTC noting a 45% rise in such incidents.

The Scheme and Its Impact

The Griffises, real estate agents, engaged clients and personal connections in a crypto commodity pool scheme, masquerading investments in crypto futures. They are now banned from trading in CFTC-regulated markets. As stated in a CFTC Press Release, “The defendants, Michael and Amanda Griffis, are permanently banned from trading in CFTC-regulated markets.”

Approximately $6.5 million was fraudulently solicited from 145 investors, according to CFTC documents. The funds were often misappropriated for personal use or sent offshore. A civil and monetary penalty totals $6.8 million, including restitution.

Victims’ funds were claimed to be invested in crypto futures, impacting primarily personal finances rather than major crypto markets. No significant on-chain activity has been reported regarding major cryptocurrencies like ETH or BTC.

CFTC emphasizes its dedication to protecting investors, as shown in this case. No visible industry backlash occurred, though experts stress heightened vigilance.

Fraud cases like these point to a rising trend in the crypto space, prompting stricter oversight. Regulatory actions ensure continued protection against financial misconduct in cryptocurrency markets.

Disclaimer:

The content on nftenex.com is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions.