Pastor Indicted For Alleged Crypto Fraud Scheme In Washington

According to Cointelegraph, a grand jury in Washington state has indicted Francier Obando Pinillo, a pastor, on 26 counts of fraud. Pinillo is accused of orchestrating a fraudulent cryptocurrency scheme named Solona Fi, which allegedly defrauded over 1,500 investors. The Justice Department announced on January 9 that Pinillo was arraigned in a federal court in Washington. He allegedly exploited his position as a pastor to persuade members of his congregation to invest in Solona Fi, claiming the concept came to him in a dream and promising it as a safe and guaranteed investment. If convicted, Pinillo could face up to 20 years in prison. In December, the Commodity Futures Trading Commission filed a lawsuit against Pinillo, accusing him of fraud and misappropriation of $6 million. The U.S. Attorney’s Office for the Eastern District of Washington stated that Pinillo served as a pastor at a Spanish-language church in Pasco, Washington. He allegedly recruited investors through Solona Fi’s Facebook page and a Telegram group named “Multimillionarios SolanoFi,” which had over 1,500 members. Some of the alleged victims were members of his church. Prosecutors claim that Pinillo misled potential investors by asserting that Solona Fi traded Bitcoin (BTC), Ether (ETH), and other cryptocurrencies on behalf of clients, promising a risk-free 35% monthly return through token staking. Investors reportedly saw fraudulent account balances on the Solona Fi website, reflecting fake returns, but were unable to withdraw their funds. Some were told they had to wait for market improvements, while others were informed they needed to recruit new investors to "buy out" their accounts. The Justice Department accused Pinillo and his accomplices of misappropriating investor funds while providing these excuses. Victims were allegedly enticed with false promises of additional returns for recruiting new investors, a tactic commonly associated with pyramid schemes. Solona Fi operated from November 2021 to October 2023. Washington U.S. Attorney Vanessa Waldref emphasized her office's commitment to recovering as much of the stolen funds as possible, acknowledging the challenges posed by the nature of cryptocurrency accounts in such cases.