Intent on investing in cryptocurrency exchange and hot water employment exchange with the U.S. Futures Commission (CFTC) and allegations that it operates in the pyramid system.
In a press release Wednesday, Sept. 30, the CFTC says it will charge the Nevada-based circuit and its David Gilbert Zephron petitioner for fraudulent solicitation and misappropriation of investor funds, as well as registration violations.
With his girlfriend, Zafron offered binary options and cryptocurrency currencies and said he had invested $ 11 million and bitcoin since 2017.
The complaint alleges that Saffron fraudulently demanded at least 14 people participate in a circulation investment pool run by the Circulation Association, with a false claim by its trading expertise and a “guarantee of 300% profit”.
Instead of investing in binary options contracts in actual trading, Saffron used the funds – transferred to his crypto wallet – to pay off other participants, “according to the Ponzi scheme.” Most likely lies in the textile.
CFTC Chairman Heath Traverse said:
“21st Century digital assets and other commodities are a great promise for our economy. Fraud schemes are likely to not only annoy innocent people by making hard money but also threaten the development of responsibility for these new and innovative markets.”
The court ordered that all property of the Saffron and Circle Association be frozen, as well as financial records. The discussion will take place on October 29.
The CFTC is looking for a cash plan, with fines and permanent bans and regular registration. The agency hopes to get the victim back, but he says he does not guarantee that full value can be obtained from the book and his office.