The Commodity Futures Trading Commission (CFTC) won its case against Circle Society, its owner David Gilbert Saffron for committing cryptocurrency fraud and misappropriation scheme.
A federal court in Nevada issued a final judgment requiring Circle Society and Mr. Saffron to pay $32 million for defrauding at least 179 investors from December 2017 to the present.
The judgment included $14,841,280 in restitution to defrauded pool participants, disgorgement of $15,815,967, and a civil monetary penalty of $1,484,128.
Additionally, the federal court permanently banned Circle Society and Mr. saffron from engaging in activities that violate the Commodity Exchange Act and CFTC regulations.
Furthermore, the federal court permanently prohibited the defendants from registering with the CFTC, trading in any CFTC-regulated markets, and trading in any commodity interest.
In its final judgment, the federal court noted that the defendants consistently failed to provide any valid defense to the CFTC’s allegations against them.