Fintech Investment Group, Compcoin to pay $1.8 million over fraudulent forex and digital asset scheme

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Fintech Investment Group, Compcoin LLC, and its owner Alan Friedland were ordered to pay a total of $1.8 million for operating a fraudulent foreign currency (forex) and digital asset scheme.

According to the Commodity Futures Trading Commission (CFTC), the U.S. District Court for the Middle District of Florida entered an order for equitable relief, a monetary sanction, and a permanent injunction against Fintech Investment Group, Compcoin, and Mr. Friedland.

The CFTC sued Mr. Fiedland and his companies for soliciting customers and prospective customers to buy a digital asset called Compcoin. The defendants falsely told customers that they will have access to Fintech Investment Group’s proprietary forex algorithmic trading program known as ART.

In their solicitation materials, the defendants claimed that the ART forex trading platform was “complete in form and function” and “ready to release on the open market.”  They also claimed that ART will stimulate strong demand from investors and forex traders to buy Compcoin to gain access to ART. Their reason was ART has a high success rate at predicting forex trades and rate of return.