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The U.S. Commodity Futures Trading Commission (CFTC) has initiated legal action against a fake trading platform and its associates for defrauding investors out of $3.6 million. The scheme, which targeted Asian Americans, involved soliciting funds in fiat and digital assets, with false promises of trading in commodity futures. Instead, the funds were misappropriated and diverted offshore.
CFTC Pursues Legal Action Over Investment Fraud Scheme in Washington
The U.S. Commodity Futures Trading Commission (CFTC) has filed fraud and misappropriation charges against a fake commodity trading platform in “an online scam targeting Asian Americans,” the regulator announced Friday. Specifically, the watchdog has taken legal action against Aipu Ltd., Qian Bai, Lan Bai, Fidefx Investments Ltd., and Chao Li, filing a civil enforcement case in the U.S. District Court for the Western District of Washington. The defendants allegedly “fraudulently solicited and misappropriated at least $3.6 million from at least 32 customers as part of a fraudulent investment scheme.”
According to the CFTC, the operation solicited funds from customers, including both fiat currency and digital assets, to trade commodity futures and foreign exchange contracts. The defendants falsely claimed these assets would be traded on leveraged or margined accounts. However, no trading occurred, and the funds were instead diverted to offshore entities. The regulator is seeking multiple forms of relief, stating:
The CFTC seeks restitution to defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, trading bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
The defendants used a network of solicitors to convince investors to send their money via online platforms. The CFTC noted in its complaint:
They directed customers to transfer their fiat and digital assets through a series of bank accounts and private digital wallets affiliated with the defendants.
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