Houston, TX – The Commodity Futures Trading Commission (CFTC) has filed charges against four Texas and Florida residents accused of running a fraudulent Bitcoin investment scheme. The complaint, filed in the U.S. District Court for the Southern District of Texas, alleges a widespread misrepresentation of trading expertise and automated systems to lure investors.
Mayco Alexis Maldonado Garcia, Cesar Castaneda, and Rodrigo Jose Castro Molina, all of Texas, along with Florida resident Joel Castaneda Garcia, are accused of fraudulently soliciting nearly $1 million from at least 27 customers through their business, Global Trading Club (GTC). The alleged scheme ran from August 2016 through October 2017.
According to the CFTC, the defendants falsely claimed GTC employed experienced “master traders” and utilized “cutting edge trading robots” to trade Bitcoin around the clock. They further misled potential investors by promising increased earnings proportional to their deposit amounts and incentivized recruitment through a multi-level marketing bonus structure. These claims were allegedly used to attract funds with the intent to speculate on Bitcoin price movements.
The agency alleges the defendants concealed the fraudulent nature of the operation by posting fabricated trading statements online, creating a false impression of profitability and success. At least $989,000 was deposited by customers into GTC accounts.
The CFTC is seeking full disgorgement of all ill-gotten gains, as well as civil monetary penalties. The agency also requests permanent trading and registration bans for the defendants, and a permanent injunction to prevent future violations of the Commodity Exchange Act and related regulations. The case is being pursued by CFTC staff members Maura Viehmeyer, James A. Garcia, Aimée Latimer-Zayets, and Rick Glaser.
Source: CFTC.gov
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