Crypto platform Debiex has been ordered by an Arizona federal court to pay $2.5 million following a lawsuit by the U.S. Commodity Futures Trading Commission (CFTC), which accused the company of running a fraud scheme known as 'pig butchering'.
Court Verdict Summary
Judge Douglas Rayes granted the CFTC's motion for judgment without a response from the defendant and ordered Debiex to repay around $2.26 million stolen from customers, along with a civil penalty of nearly $221,500. The judge noted that there is no evidence that Debiex’s lack of response was due to 'excusable neglect'.
Fraud Details
In January 2024, the CFTC filed a lawsuit against Debiex, claiming that its staff operated a 'pig butchering' scheme. The scheme involved developing romantic relationships with customers via social media to gain trust and persuade them to invest in the platform, eventually leading to the theft of approximately $2.3 million from five victims.
Role of Fraud Participants
The CFTC also accused Zhāng Chéng Yáng of being a 'money mule' for Debiex, handling and stealing victims' funds through their crypto wallets. On March 12, Judge Rayes granted a CFTC motion for default judgment against Zhāng, finding that his wallet on the OKX platform was improperly used to receive digital assets.
The case against Debiex and Zhāng Chéng Yáng highlights the importance of vigilance in cryptocurrency investments. The court rulings emphasize the need for caution when dealing with platforms that attract users through social networks.
