CFTC Accuses Pastor Of Running $6 Million Crypto Ponzi Scheme

According to Cointelegraph, the Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Francier Obando Pinillo, a pastor, accusing him of orchestrating a crypto Ponzi scheme that allegedly defrauded 1,500 individuals, including members of a Washington-based church. The CFTC claims the scheme amassed $6 million through fraudulent activities. The complaint, filed on December 9 in a Spokane federal court, alleges that Pinillo misled his congregants and others via social media by promoting a trading platform that promised high returns through "high-performance" cryptocurrency trading. The CFTC asserts that from November 1, 2021, to December 31, 2023, Pinillo presented himself as the CEO of Solanofi, Solano Partners Ltd., and Solano Capital Investments, claiming these entities formed the "Solano ecosystem" and engaged in trading Bitcoin (BTC), Ether (ETH), Tether (USDT), and other cryptocurrencies on behalf of clients. Pinillo allegedly assured customers of monthly profits up to 34.9% through Solanofi, purportedly utilizing a bot and other software for crypto trading. Additionally, a staking service for Bitcoin, Ether, Solana (SOL), USDT, and Dogecoin (DOGE) was offered under Solanofi 2.0, which promised guaranteed profits. The CFTC's complaint details that users were provided with an online dashboard displaying account statements, balances, and profits, alongside a 15% referral fee to incentivize recruitment of new participants. However, the CFTC contends that no actual trading or staking services were conducted as advertised. The complaint states that the representations and account statements were fabricated, with no automated trading program, customer accounts, or profits generated. Instead, it alleges that Pinillo misappropriated all digital and fiat assets transferred by customers. The CFTC further claims that Pinillo targeted "unsophisticated customers" with limited experience in digital asset transactions, commodity interest trading, or staking digital assets. The solicitations were reportedly conducted almost exclusively in Spanish, exploiting Pinillo's position of trust as a pastor. The regulator is seeking restitution for defrauded customers, forfeiture of all funds obtained through the scheme, a trading ban, and a permanent injunction against Pinillo. Information regarding Pinillo's legal representation was not immediately available, and he did not respond to a request for comment sent via social media.