A US court has ordered the crypto platform Debiex to return over $2.26 million to its clients following the discovery of fraudulent activities. This ruling comes amid accusations of orchestrating a 'romance' scam.
History of the Legal Proceedings
The Commodity Futures Trading Commission (CFTC) proved that Debiex was posing as a crypto platform. On March 13, Judge Douglas granted the CFTC's motion for summary judgment. Debiex did not respond to the charges, indicating the actions weren't simply 'excusable neglect.'
How Debiex Tricked Customers
CFTC charged Debiex with running a 'pig butchering' scam, wherein scammers forged fake romantic relationships through social media to lure clients into investing in the fake platform. Debiex marketed itself falsely by promising high returns via 'mining transactions'.
The Role of Zhāng Chéng Yáng in the Fraud
Zhāng Chéng Yáng was identified as a 'money mule' for Debiex, as his crypto wallet received the stolen funds from victims. The court upheld actions to freeze the funds in the OKX wallet he controlled, allowing for the restitution to the victims.
The court's decision mandates the restitution of over $2.26 million to Debiex victims and imposes a civil penalty. The CFTC remains vigilant in protecting consumers from financial fraud in the crypto space.
