CFTC charges Texas man with misappropriation $3.9 million in crypto assets and conventional currencies – Bits Media

CFTC charges Kikit founder&Mess Investments LLC in organizing a fraudulent scheme for investing in foreign currencies and crypto assets, and in appropriating more $3.9 million.

As reported by Finance Magnates, US Commodity Futures Trading Commission (CFTC) filed a lawsuit against a resident Texas Abner Alejandro Tinoco (Abner Alejandro Tinoco), founder of Kikit&Mess Investments. According to the CFTC, from September 2020 Tinoco managed to collect 61 client more $3.9 million. He stated, that these funds will be invested in foreign currencies and digital assets, and the company will manage the investment portfolios of attracted clients.

The Commission approves, what Kikit&Mess Investments did not trade its clients' funds and made false claims of profit, so as not to arouse suspicion among investors. It turned out, that Tinoco embezzled the money he received, using them to pay personal expenses: to rent a private jet, car and luxury mansion, as well as for the purchase of real estate.

CFTC requires, for Tinoco to make reparations to all victims, victims of his fraudulent scheme, and paid a fine. The regulator also established a permanent ban on Tinoco from registering companies, related to financial activities.

At the beginning of the month, the department accused the operators of the Prime FX platform for trading Bitcoin and foreign currencies of defrauding investors in the amount of $1.2 million. Besides, in September the CFTC fined 12 New York firms for illegally trading cryptocurrency options.