Summary
The Commodity Futures Trading Commission (CFTC) has charged digital asset platform Debiex with fraud for using a romance scam tactic called “pig butchering” to steal $2.3 million from investors. The CFTC alleges that Debiex and Zhāng Chéng Yáng, who may have acted as a “money mule,” cultivated relationships with potential customers and convinced them to open and fund trading accounts. Debiex misappropriated the funds instead of using them as promised. The CFTC is seeking restitution, penalties, trading bans, and a permanent injunction. This is the second case involving “pig butchering” that the CFTC has brought in recent months.
Key Points
1. The Commodity Futures Trading Commission (CFTC) has charged digital asset platform Debiex with fraud for using a romance scam tactic known as “pig butchering” to defraud investors of $2.3 million.
2. Debiex and Zhāng Chéng Yáng have been charged by the CFTC, with Zhāng Chéng Yáng potentially acting as a “money mule” for the platform. The complaint was filed in the U.S. District Court for the District of Arizona.
3. Debiex targeted Asian Americans and used friendly or romantic relationships to gain the trust of potential customers. They deceived customers into opening and funding trading accounts, misappropriating their digital assets instead of using them as promised. The CFTC is seeking restitution, disgorgement, monetary penalties, trading bans, and a permanent injunction.