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CFTC Takes Down Major Encryption Fraud Case: $3 Million Penalty + Victim Compensation

Commodity Futures Trading Commission ( CFTC ) has just released a ruling: The federal court in Texas ruled on July 9 that fraudster Abner Alejandro Tinoco and his company Kikit & Mess Investments must pay more than 31 million dollars.

Compensation Details:

  • Victim Compensation: Over $6.2 million, involving 199 victims
  • Illegal proceeds returned: $6.25 million (plus an equivalent victim compensation offset)
  • Civil Penalty: $18.77 million (equivalent to 3 times the illegal gains)

Background:

Tinoco defrauded through a fraudulent foreign exchange and cryptocurrency investment scheme, involving a huge amount of money. This ruling reflects the CFTC's determination to combat cryptocurrency fraud—not only to recover ill-gotten gains but also to impose double penalties.

Reminder: Investment projects that seem to offer high returns require caution, especially those involving foreign exchange and cryptocurrency commitments. The enforcement frequency of the CFTC is on the rise, and such cases often leave investors with nothing.

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