Bitcoin
$61,719.92-3.95%
Ethereum
$3,016.80-3.16%
Binance Coin
$549.86+0.50%
Solana
$134.75-4.63%
XRP
$0.49646744-0.72%
Dogecoin
$0.14857572-6.36%
Toncoin
$6.04-8.43%
Cardano
$0.44994132-3.12%
Shiba Inu
$0.00002212-3.39%
Avalanche
$34.30-2.92%
Tron
$0.10991633-3.06%
Wrapped Bitcoin
$60,368.92-6.22%
PlayIconNav
Crypto Prices CoinDesk 20 Index CoinDesk 20 Index
Consensus 2024Price Increase Extension Ends In
02
DAYS
14
HR
48
MIN
08
SEC
Policy

CFTC Charges California Firm and CEO With Fraud, Misappropriation of Digital Assets

The commission alleges the defendants fraudulently solicited over $7 million worth of bitcoin and ether and misappropriated some of the funds in a Ponzi scheme.

By Nelson Wang
AccessTimeIconFeb 16, 2023 at 8:49 p.m. UTC
Updated Feb 16, 2023 at 8:57 p.m. UTC
(Jesse Hamilton/CoinDesk)

(Jesse Hamilton/CoinDesk)

10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Commodity Futures Trading Commission has charged California-based Vista Network Technologies and its CEO, Armen Temurian, with fraudulently soliciting over $7 million in bitcoin and ether from customers, according to a Thursday press release. It also alleged that Vista and Temurian misappropriated a portion of these assets in a Ponzi-like scheme.

The CFTC is seeking restitution, disgorgement, civil monetary penalties, permanent trading and registration bans and a permanent injunction against further violations.

According to the complaint, from September 2017 through January 2018, Vista falsely advertised that it would trade customers’ digital assets and earn a 2.5% daily return or “double in just 80 days.” The company said it would trade customers’ bitcoin and ether using “Robot Traders” that the CFTC said it never had access to, and instead engaged in a Ponzi scheme with new and old customer funds.

Read more: US CFTC Chief Promises More ‘Precedent-Setting’ Crypto Enforcement Cases

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Nelson Wang
Nelson Wang

Nelson Wang was CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

Follow @NelWang on Twitter

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.