CFTC Announces $6.8 Million Fine as Cryptocurrency Scammers Exploit Community Trust Networks

The U.S. Commodity Futures Trading Commission (CFTC) has ordered Tennessee residents Michael and Amanda Griffis to pay $6.8 million after they ran a deceptive cryptocurrency trading operation that swindled 145 people out of $6.5 million. From 2021 to 2023, the couple managed a commodity pool called "Blessings of God Thru Crypto," which relied on a counterfeit platform designed to look like the genuine Apex Trading Platform. Investors were falsely promised substantial profits from crypto futures trading, supposedly overseen by a mysterious figure named "Coach Wendy," whose real identity is still unknown to investigators [ 1 ]. More than $4 million was funneled to a fraudulent overseas exchange, while the rest was spent on personal luxuries and paying off debts. Only $855,000 was returned to participants, operating in a manner similar to a Ponzi scheme [ 2 ].

According to the CFTC’s consent order, the Griffises must pay $5.5 million to compensate victims and an additional $1.35 million as a civil fine. The court also permanently banned them from trading commodities or registering with the CFTC, effectively prohibiting them from participating in the industry for life [ 3 ]. The couple used their background in real estate to attract investors, leveraging their local reputation to build trust. The CFTC pointed out that this case is part of a larger pattern where scammers exploit community ties, referencing recent convictions of a Denver pastor and a Long Island resident for similar crypto-related frauds [ 1 ].

The fraudulent platform run by the Griffises falsely claimed to operate with the Apex system and was set up to resemble a foreign exchange. Investigators could not find any legitimate business records linked to the exchange, which Karan Pujara, founder of ScamBuzzer, identified as a warning sign. Pujara explained that scammers often aim to extract funds quickly before authorities can intervene, and once money is sent overseas, it is rarely recovered. He recommended that investors spread their assets across several exchanges and use hardware wallets to reduce risk, a tactic that helped some victims minimize their losses [ 1 ].

This incident highlights the weaknesses in the cryptocurrency sector, where even regulated platforms can fail to protect users. The downfall of FTX, a licensed exchange that misappropriated client funds, demonstrates the broader dangers in the industry. Pujara emphasized that while institutional players can offer some protection, individuals must stay alert for warning signs like unregistered platforms or unrealistic profit guarantees [ 1 ]. The Griffises’ scam fits a recurring pattern of crypto frauds that exploit trust, especially in communities where personal relationships are used to hide illicit activity.

The CFTC’s action is part of a broader crackdown on cryptocurrency fraud, with agencies such as the SEC and Department of Justice also pursuing similar cases. The penalties against the Griffises add to a growing number of rulings against fraudulent actors, showing regulators’ commitment to securing the market and safeguarding individual investors. As the crypto industry faces new challenges, this case underscores the importance of thorough due diligence and strong regulatory measures to prevent abuse [ 1 ].