CFTC Orders Utah Man to Pay $2.5 Million for “Leveraged Bitcoin Fraud”

Utah Man Ordered to Pay $2.5 Million for Bitcoin Fraud by CFTC

The Commodity Futures Trading Commission (CFTC) has taken action against Jacob Orvida, a resident of Utah, for his involvement in a fraudulent Bitcoin scheme. Orvida has been ordered by the CFTC to pay $2.5 million in restitution and penalties.

According to the CFTC, Orvida solicited investments from individuals to join a commodity pool focused on leveraged Bitcoin trading. However, he quickly lost the majority of the funds invested. One crucial aspect of this case is that Orvida had failed to register himself as a commodity pool operator, violating important regulations.

CFTC Director of Enforcement Ian McGinley emphasized the importance of investor protection and highlighted the role of the CFTC’s digital asset enforcement program. McGinley stated, “While digital-asset cases are often complex, this Bitcoin case is a straight-up fraud: simple and old as time. We will continue to deploy every weapon in our arsenal to fight fraud in all our markets.”

The complaint filed by the CFTC revealed that Orvida had fabricated trading profits on a spreadsheet. When investors requested their funds, he made up excuses to avoid returning the money. As a result of his actions, participants in the pool suffered losses totaling $2,033,501.10.

Orvida is expected to comply with the CFTC’s order and pay the restitution within 30 days. This case serves as a reminder that the CFTC is committed to cracking down on fraudulent activities in the digital asset market.

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