CFTC accuses pastor of shilling $6M crypto Ponzi to congregants

CFTC Sues Pastor for Alleged Crypto Ponzi Scheme

The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Francier Obando Pinillo, a pastor, for orchestrating a Ponzi scheme involving cryptocurrency. The scheme allegedly netted over $6 million from approximately 1,500 individuals, including members of a Washington-based church.

Allegations against Pinillo

In a complaint filed on December 10, the CFTC accused Pinillo of fraud and misappropriation in connection with a multilevel marketing operation. As the pastor of a Spanish-speaking church in Washington, Pinillo allegedly used his position to promote a trading platform that promised "high-performance" crypto investments to his congregants and followers on social media.

Dubious Trading Practices

According to the CFTC, Pinillo claimed to be the CEO of Solanofi, Solano Partners Ltd., and Solano Capital Investments. These entities supposedly developed the "Solano ecosystem," where Pinillo traded Bitcoin (BTC), Ether (ETH), Tether (USDT), and other cryptocurrencies on behalf of clients.

The CFTC alleges that Pinillo promised monthly profits of up to 34.9% through Solanofi, which he claimed employed a bot and other software for automated crypto trading. Additionally, a staking service for BTC, ETH, Solana (SOL), USDT, and Dogecoin (DOGE) was offered through Solanofi 2.0, promising "guaranteed profits."

False Promises and Misappropriation

The CFTC alleges that no trading or staking service existed as promised. Investors were shown online dashboards that displayed false account statements showing account balances and profits. The complaint states that Pinillo misappropriated all digital and fiat assets transferred by customers.

Targeted Unsophisticated Investors

The CFTC claims that Pinillo targeted "unsophisticated customers" with limited knowledge of digital assets and trading. His solicitations were primarily conducted in Spanish, allegedly exploiting his position of trust as a pastor.

CFTC's Demands

The CFTC is seeking restitution for defrauded customers, forfeiture of all scheme-generated funds, a trading ban, and a permanent injunction. As of this writing, information regarding Pinillo's legal representation is unavailable. Pinillo has not responded to requests for comment sent via social media.