Michaela
The U.S. Commodity Futures Trading Commission (CFTC) has filed a consent order against Rashawn Russell, accusing him of defrauding investors through a digital asset trading scheme.
On February 10, the CFTC announced that U.S. authorities charged Russel, a New York resident, with fraud for orchestrating a scheme that deceived investors into contributing cryptocurrency to a fictitious fund.
The complaint states that Russell misappropriated approximately $1.5 million through the fraudulent scheme, for which he pleaded guilty to wire fraud in the U.S. District Court for the Eastern District of New York. Russell diverted the misappropriated funds for personal expenses, payments to gambling-related entities, and to make Ponzi-like payments to existing investors.
The complaint also noted that Russell convinced over two dozen retail investors to contribute Bitcoin, Ether, and fiat currency, promising to invest in his alleged proprietary digital assets trading fund.
“The order further finds Russell intentionally and/or recklessly made false and misleading statements regarding the fund’s structure, size, and performance to obtain and retain investors; failed to trade the money and assets as represented; and, falsely promised to pay withdrawal requests,” the CFTC stated.
The enforcement case marks one of the first under the CFTC’s new strategic direction, announced by acting Chair Caroling Pham on February 4. As part of a restructuring of its Division of Enforcement, the agency plans to focus on combating fraud. To support this initiative, the CFTC will create two specialized task forces: one dedicated to retail fraud and the other to complex fraud and market manipulation.
Alongside its realigned priorities, the CFTC announced plans to host roundtable discussions in the coming months. These sessions will address key topics such as conflicts of interest, prediction markets, and digital assets. Acting Chair Pham stressed that these discussions would build on previous dialogues with industry experts and market stakeholders.
On January 20, Pham was appointed acting chair by CFTC members, coinciding with the inauguration of President Donald Trump. This appointment followed the resignation of former Chair Rostin Behnam on the same day.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
