How a Crypto Scammer Lost His License: The Story of Jacob Orvidas

Have you ever heard a crypto promise that sounds too good to be true? The story of Jacob Orvidas is exactly that, but with a bitter ending.

The Perfect Deception (Or Not So Perfect)

In 2017, Orvidas approached four investors with a seductive proposal: to trade bitcoin with leverage in an investment fund. He swore that their profits would be proportional to what each one contributed. Up to this point, it sounds normal. But then came the juicy part: he boasts that a previous client turned $100,000 into bitcoins into… $2.7 million. Yes, you read that right.

The problem? The CFTC ( Commodity Futures Trading Commission of the U.S. ) investigated and categorically denied it. It was a lie.

The Mouth Betrays You

The most revealing part was listening to Orvidas speak with potential clients. In one conversation, he said:

“Crypto trading is a joke. It's like printing money… It's great when you have coins to do margin trading. You open a leveraged short, unload your bags, and win massively”.

For novice investors, this is candy. For regulators, it is evidence of fraud.

It Crumbles

The CFTC discovered that Orvidas:

• Made empty promises
• He used falsified spreadsheets
• Lost almost all the funds
• Then he made up excuses when it was time to pay

The Punishment

Orvidas negotiated with the CFTC and the SEC. The result:

• $2 million in restitution to investors
• $500,000 fine
• 10-year ban from operating or registering in the sector

Basically, he was expelled from the game.

What You Will Learn Here

Ian McGinley, director of compliance at the CFTC, sums it up well: “This is not a complicated case. It's simple fraud: as old as time”.

Christy Goldsmith Romero, CFTC Commissioner, has advice for everyone: check if someone is registered, and if something sounds too good to be true in crypto… it probably is.