Today, the Commodity Futures Trading Commission (CFTC) filed a civil enforcement action in the U.S. District Court for the Southern District of Florida against Empires Consulting Corp., a Florida corporation, and three individuals, alleging that they operated a fraudulent scheme to solicit, accept, and pool at least $41.6 million, including at least $14.3 million from over 2,300 individuals in the United States.  Defendants’ solicitations were largely via the internet or online, through the company’s website, videos posted on social media platforms, and emails.  Defendants initially solicited participants to fund their accounts using cryptocurrencies, including, among others, bitcoin, ether, and tether.

Defendants misrepresented their registration status and performance, and misappropriated at least $5 million in pool participant funds.  I applaud the efforts of the Division of Enforcement staff in filing this civil enforcement action against the Defendants and seeking full restitution on behalf of defrauded participants, as well as disgorgement, civil monetary penalties, permanent trading and registration bans, and other relief.  I also recognize the parallel actions filed today by the Securities and Exchange Commission (SEC) and the Department of Justice, as well as the assistance provided to the CFTC by the SEC and the National Futures Association.