Pastor accused of promoting $6 million crypto ponzi scheme

The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against a pastor, alleging he promoted a $6 million cryptocurrency Ponzi scheme targeting his church members in Washington state.

According to the CFTC's complaint, submitted on December 9 to a federal court in Spokane, Francier Obando Pinillo is accused of fraud and misappropriation as part of a multilevel marketing operation.

The CFTC claims that from November 1, 2021, to December 31, 2023, Pinillo presented himself as the CEO of companies such as Solanofi and Solano Partners Ltd., asserting that he managed a trading platform that promised users significant returns through “high-performance” crypto trading.

He allegedly assured congregants and social media followers that they could earn monthly profits of up to 34.9% through his platform.

The complaint details that Pinillo offered a staking service for various cryptocurrencies, including Bitcoin and Ether, through a program called Solanofi 2.0, which he claimed would guarantee profits.

To entice participation, users were shown an online dashboard displaying fabricated account statements and were offered a 15% referral fee for bringing in new clients.

However, the CFTC alleges that no actual trading or staking services existed as promised. 

“These representations and account statements were false,” the complaint stated.

“There was no automated computer trading program, there were no customer accounts, there was not trading taking place or profits generated, and Defendant was misappropriating all digital and fiat assets customers transferred,” it added.

The CFTC noted that Pinillo targeted “unsophisticated customers” with limited experience in digital asset transactions.

Furthermore, the regulator emphasized that Pinillo exploited his position as a pastor to gain trust within the Spanish-speaking community.

The CFTC is seeking restitution for defrauded customers, the forfeiture of funds obtained through the scheme, a trading ban, and a permanent injunction against Pinillo. 

As of now, there has been no response from Pinillo or his legal representatives regarding the allegations.