A Tennessee couple has been ordered to pay over $6.8 million in penalties and restitution after operating a fraudulent cryptocurrency investment scheme marketed as ‘Blessings of God Thru Crypto.’ Federal regulators confirmed the couple deceived investors by promising expert trading guidance from a mysterious figure known only as ‘Coach Wendy,’ who was purportedly an experienced cryptocurrency trader.
According to court documents, the defendants solicited funds from multiple investors by claiming their platform would generate substantial returns through strategic cryptocurrency trades supervised by this unidentified advisor. Investigation revealed that the trading platform was entirely fictitious, with no actual cryptocurrency transactions ever taking place. Instead, investor funds were allegedly misappropriated for personal expenses.
The Commodity Futures Trading Commission (CFTC) filed charges against the couple for operating what they characterized as a ‘classic Ponzi scheme’ disguised as faith-based investing. Authorities noted the scheme specifically targeted religious communities by incorporating spiritual language into its marketing materials while delivering no legitimate investment services.
U.S. District Court Judge William L. Campbell Jr. issued the final judgment requiring the defendants to pay $4.8 million in restitution to victims and a $2 million civil monetary penalty. The court also imposed permanent trading and registration bans against both individuals. Despite extensive investigation, the true identity of ‘Coach Wendy’ remains unknown, with authorities suggesting the persona may have been entirely fabricated to lend false credibility to the operation.
This case represents one of several recent enforcement actions targeting cryptocurrency investment scams that exploit both technological complexity and personal trust relationships to defraud investors.
