U.S. CFTC takes first action against cryptocurrency fraud since reorganizing enforcement division

Odaily News The U.S. Commodity Futures Trading Commission (CFTC) announced a consent order charging New York resident Rashawn Russell with participating in a digital asset trading scheme between 2020 and 2022 in which he induced investors to inject cryptocurrencies into fraudulent funds. According to the indictment, Russell misappropriated approximately $1.5 million through the scheme and he pleaded guilty to wire fraud in the U.S. District Court for the Eastern District of New York.
“Russell guaranteed investors that they would not suffer losses and, in some cases, guaranteed returns of at least 25 percent,” the CFTC complaint, filed Jan. 16, states. “In effect, Russell intentionally and/or recklessly made false or misleading statements to solicit and retain investors.”
The enforcement case is one of the first actions taken by the CFTC since Acting Chairwoman Caroline Pham announced on Feb. 4 that it would reorganize its enforcement division’s focus to combat fraud. The commission said it plans to divide enforcement case responsibilities into two working groups, one focused on retail fraud and the other on “sophisticated fraud and manipulation.”