Tennessee Couple Faces Nearly $7 Million Penalty in Crypto Trading Fraud Case

Digital dreams turn into regulatory nightmares as authorities crack down on fraudulent crypto schemes.

The High-Stakes Reckoning

Federal judges just dropped the hammer on a Tennessee-based operation that promised moon-shot returns but delivered little more than legal troubles. The nearly $7 million judgment sends shockwaves through the crypto community—proving even decentralized markets can't escape traditional accountability.

Patterns of Deception

Investigators uncovered a web of misrepresented trading strategies and fabricated performance reports. The scheme leveraged crypto's technical complexity to obscure its true nature—classic smoke and mirrors with a blockchain veneer. Victims discovered the hard way that not every 'revolutionary trading algorithm' actually revolutionizes anything beyond emptying wallets.

Regulatory Wake-Up Call

This case highlights regulators' growing sophistication in tracking crypto-related fraud. While the industry champions decentralization, this judgment demonstrates centralized authority still packs a punch when investors get burned. The timing couldn't be more symbolic—just as institutional adoption accelerates, so does enforcement against bad actors.

Because nothing says 'financial innovation' like old-fashioned restitution orders. The crypto space keeps maturing, but apparently some players still need babysitters with subpoena power.

Commodity Pool Fraud Costs Couple Millions, CFTC Says

According to the September 25 press release, married realtors Michael Griffis and Amanda Griffis convinced 145 people to contribute $6.5 million to a community pool known as “Blessings Thru Crypto.”

.@CFTC Obtains Order for Over $5.5M Restitution for Victims in Commodity Pool Fraud by Tennessee Couple: https://t.co/UIOg9SvJlq

The duo claimed that the funds WOULD be “used to trade commodity futures on the Apex Trading Platform with guidance from an individual known only as Coach Wendy.”

In reality, the commodity pool was a copy of an overseas exchange and it is still unclear who exactly “Coach Wendy” is.

“More than $4 million of the pool’s funds were sent to the illegitimate overseas exchange where it was immediately sent to a variety of other accounts and offshore trading platforms,” the press release states.

“The remaining funds were misappropriated for personal expenses, including paying personal debts and buying a variety of consumer goods,” the press release continues.

CFTC Bans Realtor Couple For Alleged Crypto Scheme

According to a newly filed consent order in the U.S. District Court for the Middle District of Tennessee, the couple $5,528,121 in restitution to defrauded victims and a $1,355,232 civil monetary penalty.

In total, the duo will have to pay over $6.8 million in monetary relief.

They are also banned from trading and registering with the CFTC and are prohibited from further violations of the Commodity Exchange Act and CFTC regulations.

“This case is a stark warning to be cautious about whom you trust with your money,” said Charles Marvine, Acting Chief of the Division of Enforcement’s Retail Fraud and General Enforcement Task Force. “If an investment opportunity seems too good to be true, it almost certainly is, for you and anyone you bring along.”