LAS VEGAS, NV – David Gilbert Saffron, an Australian citizen residing in Nevada, faces a hefty penalty and permanent trading ban following a default judgment entered by the U.S. District Court for the District of Nevada on March 29, 2021. The Commodity Futures Trading Commission (CFTC) brought the enforcement action, alleging a cryptocurrency fraud and misappropriation scheme orchestrated by Saffron and his company, Circle Society, Corp.
The court found Saffron and Circle Society jointly and severally liable for $14,841,280 in restitution to defrauded investors, $15,815,967 in disgorgement, and a civil monetary penalty of $1,484,128. The judgment permanently prohibits Saffron from engaging in activities that violate the Commodity Exchange Act and CFTC regulations, including registering with the CFTC and trading in any regulated markets.
According to the CFTC, from December 2017 through 2019, Saffron fraudulently solicited at least $15,815,967 in Bitcoin and U.S. dollars from over 179 individuals. He promised to trade the funds in off-exchange binary options involving foreign currencies and cryptocurrency pairs. Saffron created Circle Society to facilitate the scheme, falsely claiming trading expertise and guaranteeing returns of up to 300% to potential investors.
Instead of legitimately trading the funds, the CFTC alleges Saffron misappropriated investor money, holding it in his personal cryptocurrency wallet and operating a Ponzi scheme where funds from new investors were used to pay earlier participants. The majority of investors have reportedly not recovered their funds despite repeated requests. The court cited Saffron’s lack of defense and repeated failures to comply with court orders as justification for the default judgment.
The CFTC cautions that restitution orders do not guarantee victims will recover their losses, as the defendants may lack sufficient assets. The agency acknowledged the assistance of the U.S. Attorney’s Office for the District of Nevada and the North Carolina Secretary of State’s Securities Division in the case.
Source: CFTC.gov
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