The U.S. Commodity Futures Trading Commission (CFTC) announced that Debiex was operating a fraudulent digital asset scheme, misleading customers through fake websites, false trading records, and deceptive tactics. The announcement was made in a default judgment on March 12.
According to the CFTC, Debiex orchestrated a sophisticated "pig butchering" scam, where fraudsters build romantic relationships with victims to convince them to invest in fake cryptocurrency trading platforms. The CFTC's complaint alleges that Debiex's unidentified officers and/or managers cultivated friendly or romantic relationships with potential customers by communicating falsehoods to gain trust and then solicited them to open and fund trading accounts with Debiex. This deceptive tactic led to significant financial losses for the victims.
A U.S. federal judge ordered Debiex to pay approximately $2.5 million after the platform failed to respond to the CFTC's lawsuit. The ruling mandates that the platform must return about $2.26 million stolen from customers, along with a civil penalty of nearly $221,500. This judgment underscores the CFTC’s crackdown on fraudulent crypto schemes that exploit investors.
Debiex operated as a purported digital asset trading platform, presenting itself as a "Blockchain Network Decentralized perpetual contract trading platform" where users could engage in futures trading and mining transactions, according to the CFTC.
Founded in 1974, the CFTC is an independent regulatory agency tasked with overseeing U.S. commodity and financial markets. The agency has increased its enforcement actions against crypto-related fraud, reflecting the growing risks in digital asset trading.
