The Commodity Futures Trading Commission (CFTC) has accused digital asset trading platform Debiex of fraudulent practices and misappropriation linked to an online romance scam. The charges suggest that the digital asset company employed typical romance scam strategies to divert $2.3 million of customer funds initially designated for digital asset commodity trading.
According to a press release by the CFTC, unidentified employees of Debiex allegedly initiated romantic and friendly relationships with potential customers. They then encouraged these individuals to open trading accounts with the company. This activity spanned from March 2022 until January 2024, during which time Debiex is said to have misappropriated nearly $2.3 million from five customers through this scheme. Furthermore, Zhang Cheng Yang has been identified as a relief defendant due to his use of a digital asset wallet in assisting with the misappropriation of one customer's funds, indicating his role as a money mule for the company. The CFTC is now seeking restitution for the defrauded customers and considering civil monetary penalties and trading bans against the company.
The press release further indicates that the company specifically targeted Asian Americans. The alleged scheme involved three groups: solicitors, customer service representatives, and money mules. Solicitors reportedly contacted customers via social media platforms, building trust with their victims. Once this trust was established, the customer service team would set up Debiex trading accounts on behalf of these customers. Lastly, money mules would utilize their digital asset wallets to receive and misappropriate customer funds.
"This case is an example of the Division of Enforcement’s core mission—bringing justice for victims, rooting out misconduct, and holding accountable those who violate the anti-fraud provisions of the CEA," stated Director of Enforcement Ian McGinley. According to Practising Law Institute, McGinley leads the enforcement program at CFTC while overseeing prosecutions and investigations. Prior to joining the CFTC, McGinley served for over a decade as an assistant U.S. Attorney in New York and was a partner at the law firm Akin Gump.
