CFTC Charges New York Resident With Cryptocurrency Fraud

According to Odaily, the U.S. Commodity Futures Trading Commission (CFTC) has issued a consent order against Rashawn Russell, a New York resident, for his involvement in a digital asset trading scheme from 2020 to 2022. Russell allegedly misled investors into contributing cryptocurrency to a fraudulent fund, misappropriating approximately $1.5 million. He has pleaded guilty to wire fraud in the U.S. District Court for the Eastern District of New York. The CFTC's complaint, filed on January 16, states that Russell assured investors they would not incur losses and, in some cases, promised returns of at least 25%. However, he is accused of making false or misleading statements to attract and retain investors. This enforcement action is among the first since Acting Chair Caroline Pham announced on February 4 that the CFTC would refocus its enforcement division to combat fraud. The commission plans to divide enforcement responsibilities into two task forces, one targeting retail fraud and the other focusing on complex fraud and manipulation.