Global Trading Club operators charged for duping $1 million from investors

The United States derivatives market watchdog has reportedly charged Global Trading Club operators for allegedly running a fraudulent Bitcoin trading business. The regulator said that the investors were provided false information, which misled them to commit close to $1 million to the Global Trading Club operators. Amongst other things, CFTC seeks disgorgement of ill-gotten gains. 

CFTC charges four Global Trading Club operators

Following the notice, the Commodity Futures Trading Commission (CFTC) filed a complaint against four Global Trading Club operators yesterday, in the U.S. District Court for the Southern District of Texas. The four defendants accused in the complaint document are namely Cesar Castaneda, Mayco Alexis Maldonado Garcia, Joel Castaneda Garcia, and Rodrigo Jose Castro Molina.

The regulator accused of running a fraudulent investment business, wherein they solicited money from their unsuspecting investors to trade Bitcoin. The CFTC noted in the complaint document that the Global Trading Club operators ran the alleged fraudulent Bitcoin investment business from at least August 2016 to October 2017. 

Nearly $1 million was lost

During the time, the defendant presented false information to the investors, misleading them into believing that their business operates with expert traders, including “cutting edge trading robots” for cryptocurrency trading. The defendants concealed the true picture of their business by feeding investors with fake trading statements. 

More like a multi-level marketing scheme, investors were asked to invite more persons to join the business in order to boost their earning. Investors were also told that their earnings from Global Trading Club will be increased in accordance with the amount they deposit for the cryptocurrency trading, according to the CFTC’s complaint. 

The document claimed that exactly $989,000 was deposited to Global Trading Club by the from unsuspecting investors.  

The CFTC seeks disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against further violations of the Commodity Exchange Act and the Commission’s regulations, as charged.