TLDR
- Debiex Compelled to Settle $2.5 Million After CFTC Accusations of Romance Deception Tactics
- Judge Douglas Rayes issued a conclusive judgment after Debiex failed to contest the legal action brought against it.
- Fraudsters masqueraded as successful women traders, entrapping five victims into investing a total of $2.3 million.
- Zhāng Chéng Yáng identified as a 'financial conduit,' holding an OKX account with 63 ETH and USDT.
- The court mandated the return of illicitly obtained funds plus a $221,500 civil fine to the victims.
A federal judge The crypto entity Debiex was ordered to pay about $2.5 million in repayments and fines following a U.S. CFTC lawsuit it did not contest. The CFTC accused Debiex of partaking in a deceptive scheme exploiting romantic relationships to trick investors.
The term refers to scammers who establish bonds with their targets before persuading them to invest in sham operations. pig butchering On the 13th of March, Judge Douglas Rayes of an Arizona federal court accepted the CFTC’s request for a conclusive judgment regarding Debiex's misconduct. The court ordered the restitution of about $2.26 million misappropriated from clients.
An additional nearly $221,500 civil fine was imposed. Judge Rayes noted Debiex's inaction in the case wasn't excusable, citing a lack of valid rationale for their disregard.
In January 2024, the CFTC lodged a legal case against Debiex. Court papers depicted the platform as a 'Blockchain Network Decentralized perpetual contract trading platform' allowing trading and mining activities.
In reality, the platform was reportedly a cleverly crafted romance hoax targeting unsuspecting investors. The CFTC alleged Debiex's personnel pretended to be female traders to build rapport.
These fictitious figures maintained ongoing dialogues with intended marks and disseminated personal photos. They cast themselves as successful crypto traders to establish trust.
The fraud managed to deceive five victims who collectively invested around $2.3 million into the sham platform. Instead of executing genuine trades, Debiex reportedly absconded with the funds.
Legal documentation detailed how investors were shown fictitious account metrics upon depositing their money. The platform simulated fake trades and profit-riddled returns to uphold an aura of authenticity.
‘Almost all this information was probably fictional,’ the CFTC noted in its filing. The agency identified a method through which deposits were directed into numerous digital wallets to obscure the true endpoint.
The CFTC also spotlighted a central operator by the name of Zhāng Chéng Yáng as a 'money conduit,' handling transactions through crypto accounts purposed for laundering investors' capital.
On March 12, Judge Rayes granted the CFTC’s appeal for a definitive ruling against Zhāng. The court asserted his management of an OKX wallet storing assets he wasn't lawfully entitled to.
Default Judgement Against Zhāng
During inquiries, OKX actively retained the wallet's contents. This account embraced about 63 Ether (ETH) valued at about $119,500 alongside $5.70 in Tether (USDT).
Judge Rayes decreed that these holdings be rerouted to one of the victims. This amount constitutes just a fraction of the entire sum defrauded through the operation.
The CFTC's litigation underlines escalating alarms regarding romance deceptions in the crypto domain. Such scams frequently start on social media platforms with perpetrators initiating romantic engagements with targets.
After gaining a victim's trust, swindlers persuade them to invest in seemingly authentic crypto trading platforms, which are, in truth, fraudulent setups intended to purloin funds.
The Debiex instance arises amidst broader anxiety over rising financial setbacks within the crypto realm. Advocacy group Immunefi uncovered substantial losses in a February 2025 report.
Their research revealed a spike from $73,915,700 in January 2025 losses to a startling $1,528,342,400 in February 2025, a massive 20-fold leap month to month.
Moreover, the February 2025 figures reflect an 18-fold rise in contrast to the comparable timeframe the previous year. February 2024 had documented losses at $81,603,400.
The CFTC continues its proactive stance in addressing cryptocurrency scams. It stresses the critical importance of investor vigilance against romantic deception and similar fraudulent new-age tactics.
Esteemed Editor-in-Chief of Blockonomi and founder of the UK-Based Online Media Firm, Kooc Media. A staunch advocate for Open-Source Tech, Blockchain Innovation, & a universally accessible Internet.
