The Commodity Futures Trading Commission (CFTC) has filed suit against four people. It concerns three men from Texas and one from Florida. The four have been accused of defrauding investors with their fake Bitcoin company. It brought them more than $ 1 million.
Scammers
The CFTC lists the four by name in a statement. It would be Joel Castaneda Garcia, Mayco Alexis Maldonado Garcia, Cesar Castaneda and Rodrigo Jose Castro Molina. The four represented a company known as Global Trading Club (GTC).
They pretended that the company was hiring super good traders with years of experience in the crypto market. The knowledge and expertise of these experts was reportedly used to assist the company with investments. They would decide which trading patterns to follow. In this way, they were able to advise the clients on investments in a range of tokens.
However, none of this was true. There were no traders active on behalf of GTC at all. The company also claimed to use "advanced bots" to trade Bitcoin for investors every hour of the week.
False promises
It all resulted in false promises. There was also no bonus at all for referring others. And this construction sounds like a pyramid scheme in its purest form.
To disguise their fraud, the defendants provided misleading trading statements that they posted on the site.
The CFTC is now committed to recovering the ill-gotten gains. They also want to impose fines and have the four register and get a trade ban. Finally, they want to bring about a permanent ban on further violations of the Commodity Exchange Act and Commission regulations.
Victims
According to the statement of the CFTC, at least 30 investors have been defrauded. Yet they raised a total of $ 989,000 from these several dozen victims.
The company was already labeled as a ponzi by BehindMLM.com four years ago. At the time, 62% of web traffic came from Japan. It was then concluded that there is a Japanese group behind the company, but that has not turned out to be the case.
Years ago it was described exactly how this company is bursting with fraud. You can't get more ponzi than this: