According to the Commodity Futures Trading Commission (CFTC), Debiex cryptocurrency trading platform users were defrauded of around $2.3 million.
According to a CFTC statement, the complaint claims that several Debiex officers and managers allegedly used misleading information to earn the trust of potential clients, leading to the development of friendly and “intimate” connections.
These people then urged the clients above to open and fund Debiex accounts for trading digital assets and commodities. Debiex is charged with receiving and embezzling an estimated $2.3 million from five clients between March 2022 and the present.
Zhāng Chéng Yáng is one of the defendants included in the petition; it is alleged that at least one customer’s funds were fraudulently obtained through the usage of his digital wallet. Ian McGinley, Director of Enforcement, said:
“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.”
Debiex reportedly ran publicly accessible internet domains that were created in March 2022, according to the complaint. Customers in the United States could access the domains.It is reported that the exchange used these websites to specifically target people in the nation who are Asian in origin.
The accusations further claim that contrary to what was promised, Debiex mishandled the digital assets of its clients rather than using them for trade. The websites purportedly mimicked the features of an authentic live trading platform, a trick that fooled clients into thinking they were getting into trading accounts.
According to the CFTC, there was no actual trading activity on the client’s behalf. The frequency of cryptocurrency romance scams is increasing to the point where the Federal Bureau of Investigation (FBI) is becoming aware of them.
The FBI warned about an alarming rise in online romance scams only days before Valentine’s Day of the previous year. In these scams, con artists trick victims into sending money under the false pretense of investing in or trading cryptocurrencies.
While internet dating has grown in popularity, scammers sadly find it easy prey, as Special Agent in Charge of FBI Jacksonville Sherri E. Onks noted. Onks pleaded with anyone looking for love or companionship online to thoroughly understand the dangers of being taken advantage of.
She also said that since scammers will eventually make demands, you must create clear limits early on and avoid paying money to people you have never met.
