Regulatory Series on Cryptocurrencies: US-CFTC Sues Naveda Company in $11 Million Cryptocurrency Fraudulent Scheme

It is always unwise to be fascinated by the luring assurances of returns by the investment companies. The rosy statements made by such aggressive companies may overlap the other side of the coin which is higher risk associated with investment schemes. Having said that, this isn’t a pessimistic perspective. We have witnessed yet another ‘Ponzi Schemes’ of cryptocurrency investment vehicle.

The U.S. Commodity Futures Trading Commission has made an announcement of the filing of a civil enforcement action in the U.S. District Court for the District of Nevada, charging David Gilbert Saffron of Las Vegas, Nevada and Circle Society, Corp., a Nevada corporation, with fraudulent solicitation, misappropriation, and registration violations pertaining to an $11 million binary options scheme Saffron operated through Circle Society.  The complaint was filed on Monday, September 30, 2019.

According to the CFTC, David Gilbert Saffron, creator of Circle Society, defrauded at least 14 investors out of $11 million worth of Bitcoin.

The CFTC Chairman Heath P. Tarbert said “Digital assets and other 21st century commodities hold great promise for our economy, Fraudulent schemes, like that alleged in this case, not only cheat innocent people out of their hard-earned money, but they threaten to undermine the responsible development of these new and innovative markets.  America must be a leader in this space, and we will only succeed if these markets have integrity.”

Glbert Saffron, is an Australian citizen, who happens to have long living in Las Vegas. For now, the Court documents state that the CFTC has been unable to trace him out, although he is aware of the lawsuit. A hearing on the preliminary injunction has been scheduled for 29th of this month.