USDS (usds) 
Cryptocurrency Scam Alert: Pastor Charged with Operating $5.9 Million Ponzi-Like Scheme
A civil enforcement action has been filed by the Commodity Futures Trading Commission (CFTC) against Washington State pastor Francier Obando Pinillo, alleging he operated a fraudulent multilevel marketing scheme involving digital assets. The scheme, operating under the ‘Solanofi’ name, targeted over 1,500 individuals, primarily Spanish-speaking members of Pinillo’s church in Pasco, Washington.
Guaranteed Profits or Empty Promises?
The scheme, valued at $5.9 million, promised customers guaranteed profits of up to 34.9% monthly through a risk-free leveraged staking platform for cryptocurrency trading. However, according to the CFTC, no such platform existed, no trading occurred, and all customer funds were misappropriated.
Abuse of Trust and Deceptive Tactics
Pinillo used his role as a trusted pastor to gain the confidence of his victims, many of whom had limited understanding of cryptocurrency or trading. He presented himself as the CEO of the Solanofi entities, assuring customers that the platform’s automated system could generate extraordinary returns through cryptocurrency trades.
Pinillo maintained the façade by providing customers with fake online account statements and offering 15% referral bonuses to encourage others to join the scheme. These actions effectively created a Ponzi-like structure, using funds from new investors to pay fictitious profits to earlier participants.
CFTC’s Complaint and Charges
The CFTC’s complaint against Pinillo claims that he made omissions in his solicitations, including the lack of a real trading platform, falsified account statements, and misappropriation of customer funds. Payments labeled as profits were actually from misappropriated assets.
The CFTC is seeking restitution for defrauded customers, disgorgement of funds, civil penalties, and a permanent ban on Pinillo’s trading.
“This case highlights the importance of doing your own research and being cautious of investment opportunities that seem too good to be true.”
Tips for Safe Investing in Cryptocurrencies:
- Research the company and its founders thoroughly.
- Be cautious of guaranteed profits or unrealistic returns.
- Verify the existence of a real trading platform or investment opportunity.
- Never invest more than you can afford to lose.
- Stay informed and up-to-date on the latest cryptocurrency news and trends.
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