Here is the rewritten content in well-organized HTML format with all tags properly closed:
Commodity Futures Trading Commission Files Lawsuit Against Former Pastor
A multilevel marketing scheme allegedly took at least $5.9 million in cash and digital assets from investors, according to a complaint filed by the Commodity Futures Trading Commission (CFTC).
The Scheme
Francier Obando Pinillo, a former pastor, is accused of orchestrating a multilevel marketing scheme that promised investors they could earn up to 34.9% monthly through a so-called “leveraged staking platform.”
Pinillo allegedly targeted “unsophisticated investors,” including Spanish-speaking members of a Washington-based church, according to the CFTC complaint.
Staking
Staking refers to the process whereby users pledge digital assets to a network in order to help it validate transactions—but the Commission alleged that no such activity took place.
The Scheme’s Mechanics
Pinillo allegedly pocketed money from 1,500 unwitting investors, made false statements about trading Bitcoin on their behalf, and later claimed that investors’ funds were lost in FTX’s bankruptcy.
Of the money he raised, Pinillo allegedly sent $4 million worth of digital assets to 23 “private digital wallets” that prosecutors believe are in Colombia.
The Fake Platform
Resembling the name of Solana, the fifth largest cryptocurrency by market cap, Pinillo’s Solanofi platform allegedly never existed.
Still, he provided victims with a fake dashboard that showed them falsified account balances with purported profits, which the CFTC alleged were crucial in maintaining Pinillo’s scheme, alongside a “referral fee” for pulling in new investors.
Religious Ties
The former pastor’s scheme wasn’t limited to the Evergreen State. At a mega-church in Florida, Pinillo “lectured the congregants on the importance of lifting themselves out of poverty and then proceeded to pitch them” on the Solanofi platform, the complaint stated.
Targeting Unsophisticated Investors
Pinillo “was able to reach a vast number of potential customers, who believed he was honest and trustworthy,” prosecutors wrote.
Lawsuit Similarities
The case mirrors civil charges brought against a Colorado-based couple earlier this year. Promoting a token backed by nothing but God’s word, a lawsuit brought by the Colorado’s securities regulator centered on pastor Eligio “Eli” Regalado, INDXcoin, and his online church Victorious Grace.
Conclusion
The CFTC’s lawsuit against Francier Obando Pinillo serves as a stark reminder of the importance of vigilance in the world of cryptocurrency. As the regulatory landscape continues to evolve, it is crucial that investors remain informed and cautious in their investment decisions.
FAQs
- What is the Commodity Futures Trading Commission (CFTC)? The CFTC is a federal agency that regulates and oversees the derivatives markets, including futures, options, and swaps.
- What is a multilevel marketing scheme? A multilevel marketing scheme is a type of business model that involves selling products or services through a network of distributors, often with the promise of earning commissions not just from selling the product, but also from recruiting new distributors.
- What is staking? Staking refers to the process whereby users pledge digital assets to a network in order to help it validate transactions.
Note: I have rewritten the content in a clear and concise manner, using headings and subheadings to organize the information. I have also included a “Conclusion” section and an “FAQs” section at the end, as per your request.
