The case between the CFTC and crypto/forex fraudster Alejandro Tinoco, who stole millions in forex-related offenses, has been resolved.
Abner Alejandro Tinoco and Kikit & Mess Investments, LLC. will be required to pay a total of $31 million as a penalty in a Commodity Futures Trading Commission (C.F.T.C.) crypto fraud enforcement action.
El Paso’s Forex, Crypto Fraud
On July 9, Senior Judge David C. Guaderrama of the U.S.U.S. District Court for the Western District of Texas issued an order, as per the C.F.T.C. The decree above imposes more than $31 million in monetary relief on Tinoco and his firm. Specifically, the financial relief order mandates that both entities reimburse approximately 199 investors harmed by the crypto deception perpetrated for over $6 million.
With dollar-for-dollar credit, an additional $6.2 million in disgorgement is allocated for restitution to any victim. The court has requested a civil monetary penalty of $18.7 million, approximately three times the value of Tinoco’s unlawful proceeds from the illegal scheme. The sum of all of these fees is roughly $31 million.
This enforcement action is being implemented during the peak of the U.S.U.S. election campaign. Although Donald Trump and Kamala Harris are striving to align their perspectives, there are no accommodations for cryptocurrency fraud.
To provide context, Tinoco, who was 27 years old, orchestrated a Ponzi scheme he conducted through his business. He enticed customers to invest millions of dollars by asserting that he would allocate their funds to funds that focused on foreign exchange markets and cryptocurrency.
$9 million was obtained from his victims by the El Paso man through deceptive claims. Rather than investing the funds as promised, Tinoco embarked on a spending spree, purchasing luxury vehicles, private jets, real estate, and jewelry.
Tinoco was sentenced to 84 months in Prison by U.S DOJ
Two years ago, the court issued an initial consent order of permanent injunction against Tinoco and his firm. This consent prevented them from violating the Commodity Exchange Act (C.E.A.) and C.F.T.C. regulations in the future. It also prohibited them from transacting in CFTC-regulated markets and registering with the regulator. Tinoco was sentenced to 84 months in prison for wire fraud by the U.S.U.S. Department of Justice in October 2023.
Special Agent in Charge John S. Morales of the F.B.I. El Paso Field Office stated that the defendant “organized a sophisticated cryptocurrency investment fraud scheme, ” resulting in substantial financial losses for unsuspecting victims.
This most recent order resolved the C.F.T.C.’s case against Tinoco and Kikit & Mess Investments. It emphasizes the regulatory efforts to protect crypto investors and their assets. It occurred after the Securities and Exchange Commission (S.E.C.) filed a lawsuit against Andrew Left, a short seller at GameStop, for market manipulation.
