CFTC files case against Circle Society for fraudulent activities
|- The principle of “Circle Society” David Gilbert Saffron lured members through his social media.
- Saffron is accused of performing a fraudulent crypto-binaries scheme and lying about his trading qualifications.
The US Commodity Futures Trading Commission (CFTC) filed a case against David Gilbert Saffron, the principle of “Circle Society.” Saffron is accused of performing a fraudulent crypto-binaries scheme and lying about his trading qualifications. The Las Vegas, Nevada, resident baited members through his social media. He lured the public into investing their “bitcoins and US dollars” in a pool of funds promising that it would be used for trading products like binary options and forex contracts.
The scheme was being carried out since December 2017. However, in September 2019, CFTC came to know about its illicit activities. David’s business was neither registered with the US relevant regulators, nor was he connecting investors to a legitimate exchange. The agency demands penalties, disgorgement of ill-gotten gains, and permanent injunctions, even though the victims may not be paid back.
Saffron had falsely claimed that he made gains up to 300% from trading forex and binary options by distributing false account statements to fund participants. When the investors demanded to pay out earnings, Saffron returned some amounts to a few customers as purported “profits” in the manner of a Ponzi scheme. CFTC Chairman Heath Tarbert also commented on the rising crypto-related frauds.
He said:
“Digital assets and other 21st century commodities hold great promise for our economy. Fraudulent schemes, like that alleged in this case, not only cheat innocent people out of their hard-earned money, but they threaten to undermine the responsible development of these new and innovative markets. America must be a leader in this space, and we will only succeed if these markets have integrity.”
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