BTC

$61180.65

-1.42%

ETH

$2951.268

-1.90%

BNB

$587.351

-1.56%

XRP

$0.503

-2.48%

News

CFTC Fines Bitcoin Fraudster With $2M Penalty And 10-Year Trading Ban

September 8, 2023 - Around 2 mins mins to read

Key Points:

  • The CFTC has fined Jacob Orvidas over $2 million and banned him from trading for 10 years.
  • He defrauded investors by promising significant profits from leveraged Bitcoin trading and then losing their funds.
  • Orvidas falsely represented his trading prowess and deceived at least four individuals, leading them to contribute over $2 million to his commodity pool.
The Commodity Futures Trading Commission (CFTC) has taken decisive action against Jacob Orvidas, issuing a groundbreaking order that simultaneously files and settles charges against him.
CFTC Fines Bitcoin Fraudster With $2M Penalty And 10-Year Trading Ban

The order, handed down today, exposes Orvidas for his fraudulent activities involving leveraged Bitcoin trading within a commodity pool.

Orvidas stands accused of luring at least four individuals, or “pool participants,” into his scheme, where he made grandiose promises of substantial profits and the safety of their investments.

However, the reality was far from his claims, as he proceeded to lose the majority of their funds through reckless trading. To compound his deceit, Orvidas resorted to false narratives, presenting fictitious spreadsheets and offering excuses to mask the losses.

In the end, these deceitful actions led to pool participants losing over $2 million.

The CFTC‘s order mandates Orvidas to make restitution payments exceeding $2 million and imposes a hefty civil monetary penalty of $500,000. Moreover, it requires Orvidas to halt any further violations of the Commodity Exchange Act.

In a significant move, the order also imposes a 10-year ban on Orvidas’s registration and trading activities.

Orvidas’ fraudulent activities unfolded between October 2017 and July 2020. During this period, he deceived investors by misrepresenting his trading abilities, fabricating profits, and making false claims about the safety of their investments.

As Coincu reported, Michael and Amanda Griffis, proprietors of a real estate business in Clarksville, Tennessee, were also the subject of a complaint from the CFTC on July 25 for allegedly defrauding more than 100 persons in a scheme involving a digital assets commodity pool.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

CFTC

Commodity Exchange Act

Jacob Orvidas

Avatar of Harold

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

CFTC Fines Bitcoin Fraudster With $2M Penalty And 10-Year Trading Ban

Key Points:

  • The CFTC has fined Jacob Orvidas over $2 million and banned him from trading for 10 years.
  • He defrauded investors by promising significant profits from leveraged Bitcoin trading and then losing their funds.
  • Orvidas falsely represented his trading prowess and deceived at least four individuals, leading them to contribute over $2 million to his commodity pool.
The Commodity Futures Trading Commission (CFTC) has taken decisive action against Jacob Orvidas, issuing a groundbreaking order that simultaneously files and settles charges against him.
CFTC Fines Bitcoin Fraudster With $2M Penalty And 10-Year Trading Ban

The order, handed down today, exposes Orvidas for his fraudulent activities involving leveraged Bitcoin trading within a commodity pool.

Orvidas stands accused of luring at least four individuals, or “pool participants,” into his scheme, where he made grandiose promises of substantial profits and the safety of their investments.

However, the reality was far from his claims, as he proceeded to lose the majority of their funds through reckless trading. To compound his deceit, Orvidas resorted to false narratives, presenting fictitious spreadsheets and offering excuses to mask the losses.

In the end, these deceitful actions led to pool participants losing over $2 million.

The CFTC‘s order mandates Orvidas to make restitution payments exceeding $2 million and imposes a hefty civil monetary penalty of $500,000. Moreover, it requires Orvidas to halt any further violations of the Commodity Exchange Act.

In a significant move, the order also imposes a 10-year ban on Orvidas’s registration and trading activities.

Orvidas’ fraudulent activities unfolded between October 2017 and July 2020. During this period, he deceived investors by misrepresenting his trading abilities, fabricating profits, and making false claims about the safety of their investments.

As Coincu reported, Michael and Amanda Griffis, proprietors of a real estate business in Clarksville, Tennessee, were also the subject of a complaint from the CFTC on July 25 for allegedly defrauding more than 100 persons in a scheme involving a digital assets commodity pool.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Visited 63 times, 1 visit(s) today