Blessings Thru Crypto? CFTC Unveils $6.8M Fraud Scheme

The U.S. Commodity Futures Trading Commission (CFTC) secured a $6.8 million judgment against Michael and Amanda Griffis, a Tennessee couple who defrauded at least 145 individuals through a fraudulent cryptocurrency-based commodity pool. The U.S. District Court for the Middle District of Tennessee ordered the Griffises to pay $5,528,121 in restitution to victims and a $1,355,232 civil monetary penalty, totaling over $6.8 million in relief. The couple, realtors in Clarksville, Tennessee, operated the scheme under the name "Blessings Thru Crypto," soliciting more than $6.5 million from investors by falsely claiming the funds would be traded on the Apex Trading Platform, a sham overseas exchange. Investors were told trades would be guided by a figure known as "Coach Wendy," whose identity remains unknown. Over $4 million of the pool’s funds were sent to the fraudulent platform and dispersed through offshore accounts, while the remainder was used for personal expenses, including debt repayment and consumer purchases.

The consent order permanently bans the Griffises from registering with the CFTC or participating in trading activities governed by the Commodity Exchange Act. Charles Marvine, Acting Chief of the CFTC’s Retail Fraud and General Enforcement Task Force, emphasized the case as a cautionary tale: "If an investment opportunity seems too good to be true, it almost certainly is, for you and anyone you bring along." The ruling resolves a CFTC enforcement action filed in July 2023, which highlighted the couple’s exploitation of personal and professional connections in the real estate community to gain trust and misappropriate funds.

The CFTC reiterated warnings about unregistered commodity pools, urging investors to verify registrations via the NFA BASIC database before committing capital. The agency noted that fraudsters often leverage trust and personal networks to divert funds to fraudulent platforms or personal use. The Griffises’ case underscores the risks of unregulated schemes, particularly in digital asset markets, where victims face significant financial harm. The CFTC also highlighted its whistleblower program, which rewards individuals reporting misconduct with 10% to 30% of collected penalties.

The enforcement action aligns with broader regulatory efforts to combat commodity pool fraud. In a related case, the CFTC secured over $6 million in penalties against Chicago-based LJM Partners and its executives for misleading investors about risk management practices. These actions reflect intensified oversight of fraudulent schemes, though the CFTC stresses that individual due diligence remains critical.

The Griffises’ scheme is part of a growing trend of crypto-related fraud, with U.S. authorities reporting a 45% increase in cryptocurrency-related losses from 2022 to 2023, reaching $5.6 billion. The CFTC and FBI have collaborated on cases involving overseas perpetrators, who often use fake investment platforms to siphon funds. As regulators expand efforts to recover assets and penalize offenders, the CFTC reiterated that victims should remain vigilant against "too-good-to-be-true" promises and verify the legitimacy of any investment opportunity.

Source: [1] CFTC Obtains Order for Over $5.5M Restitution for Victims in Commodity Pool Fraud by Tennessee Couple (https://www.cftc.gov/PressRoom/PressReleases/9133-25) [2] Tennessee Couple Fined $7M for Commodity Pool Fraud (https://phemex.com/news/article/tennessee-couple-fined-7m-for-commodity-pool-fraud-21790) [3] CFTC Secures $6.8 Million Judgment Against "Blessings Thru Crypto" Fraud (https://financefeeds.com/cftc-secures-6-8-million-judgment-against-blessings-thru-crypto-fraud/) [4] Couplet Ordered to Pay Almost $7 Million in Crypto Fraud (https://cryptonews.com/news/tennessee-couple-ordered-to-pay-almost-7-million-in/) [5] United States Seizes More than $6 Million in Alleged Proceeds of Crypto Confidence Scheme (https://www.justice.gov/usao-dc/pr/united-states-seizes-more-6-million-alleged-proceeds-crypto-confidence-scheme) [6] CFTC Secures Over $6 Million in Court-Ordered Penalties in LJM Commodity Pool Fraud Case (https://www.brokersview.com/news/cftc-secures-over-6-million-in-courtordered-penalties-in-ljm-commodity-pool-fraud-case-263739)