The U.S. Commodity Futures Trading Commission (CFTC) has announced a civil enforcement action against David Gilbert Saffron and his company based in Nevada.
CFTC has filed a lawsuit for “fraudulent solicitation, misappropriation, and registration violations relating to an $11 million binary options scheme Saffron operated through Circle Society.”
Nevada District Court has decided to freeze the assets of Saffron and Circle Society immediately, where the company is based. The CFTC lawsuit claims that since December 2017 Saffron has been running a Ponzi scheme.
CFTC Chairman Heath P. Tarbert said;
“Fraudulent schemes, similar to that asserted during this case, not only cheat innocent people out of their hard-earned cash, however, they threaten to undermine the accountable development of those new and innovative markets. America should be a leader in this area, and we will only succeed if these markets have integrity.”
According to the lawsuit, the defendants, misleadingly obtained funds from 14 participants to engage in a pool run by the Circle Society, by boasting regarding return rates of up to 300 per cent.
It is claimed that Saffron diverted the funds in the way of a Ponzi scheme to his own cryptocurrency wallet and to reward some participants.
The CFTC warns claimants that restitution proceedings may not contribute to the recovery of lost money because of insufficient funds or assets may be available. To know more about cryptocurrencies price, market cap and other metrics visit Global Exchange (GX trade).