A federal court has mandated Tennessee-based realtors Michael and Amanda Griffis to pay nearly $7 million in restitution and penalties for operating a fraudulent cryptocurrency commodity pool. The Commodity Futures Trading Commission (CFTC) disclosed the final judgment on September 25th, revealing that the couple solicited approximately $2.8 million from 145 participants between 2017 and 2021.
The Griffises promoted their scheme as a professional digital asset trading operation, falsely guaranteeing consistent profits through leveraged cryptocurrency derivatives trading. Instead of executing promised strategies, they misappropriated investor funds for personal expenses including luxury vehicles, real estate acquisitions, and credit card payments. Court documents indicate they provided fabricated account statements to conceal trading losses and diversion of assets.
Beyond the disgorgement of unlawfully obtained funds, the judgment imposes permanent trading and registration bans against the defendants. CFTC Director of Enforcement Ian McGinley emphasized the agency’s commitment to pursuing “all individuals who engage in commodity pool fraud, including those who misuse customer assets for lavish lifestyles.”
This case highlights regulatory vigilance against cryptocurrency investment scams, particularly those exploiting retail investors’ limited understanding of derivatives markets. The CFTC encourages potential investors to verify registration status through its SmartCheck database before committing to commodity pool arrangements.
