Crypto Platform Debiex Ordered to Pay $2.5M in Romance Scam Case

A federal judge has ordered the crypto platform Debiex to pay approximately $2.5 million in restitution and penalties following a lawsuit filed by the U.S. Commodity Futures Trading Commission (CFTC). The lawsuit accused Debiex of operating a "pig butchering" scam, a fraudulent scheme where scammers build romantic relationships with victims to convince them to invest in fake cryptocurrency trading platforms.

Judge Douglas Rayes of the Arizona federal court granted the CFTC’s motion for summary judgment against Debiex on March 13. The ruling mandates that the platform must return about $2.26 million stolen from customers, along with a civil penalty of nearly $221,500. Judge Rayes determined that Debiex’s failure to respond to the lawsuit was not due to “excusable neglect,” finding no justification for the company’s inaction.

The CFTC initially filed the lawsuit against Debiex in January 2024, alleging that the platform marketed itself as a “Blockchain Network Decentralized perpetual contract trading platform” where users could engage in futures trading and mining transactions. However, the operation was allegedly a sophisticated romance scam targeting unsuspecting investors. Debiex staff posed as female traders to build trust with potential victims, engaging in continuous conversations and sending personal photos to present themselves as highly successful cryptocurrency investors.

The scheme successfully lured five victims who collectively deposited around $2.3 million into the fraudulent platform. Rather than facilitating legitimate trades, Debiex simply stole the funds. Victims were provided with fabricated account balances, fake trading positions, and false profit figures to maintain the illusion of legitimacy. The CFTC found that customer deposits were funneled through multiple digital wallets to hide their final destination.

The CFTC also identified a key figure in the operation named Zhāng Chéng Yáng. He was accused of acting as a “money mule” by handling transactions through cryptocurrency wallets used to receive and launder victims’ funds. On March 12, Judge Rayes granted the CFTC’s request for a default judgment against Zhāng. The court concluded that he controlled an OKX wallet that received assets to which he had no legal claim. The wallet contained nearly 63 Ether (ETH) valued at approximately $119,500 and $5.70 worth of Tether (USDT). Judge Rayes ordered these funds to be transferred to one of the victims.

The CFTC’s case highlights the growing concern about romance scams in the cryptocurrency space. These scams typically begin on social media platforms where fraudsters initiate romantic relationships with targets. After building trust over time, scammers convince victims to invest in what appear to be legitimate cryptocurrency trading platforms. These platforms are actually fraudulent operations designed to steal funds.

The Debiex case underscores the importance of investor awareness regarding romance scams and other deceptive practices in the digital asset space. The CFTC continues to actively pursue cases involving cryptocurrency fraud, emphasizing the need for vigilance and education to protect investors from such schemes.