Couple Ordered to Pay $6.8 Million for Crypto Fraud

TLDR

• Griffises defrauded 145 investors out of $6.5 million.
• CFTC imposed $5.5 million restitution and $1.3 million penalty.
• Scheme diverted funds to offshore accounts and personal spending.

Michael and Amanda Griffis, a couple based in Clarksville, Tennessee, have been ordered by the U.S. District Court for the Middle District of Tennessee to pay restitution and penalties totaling nearly $6.8 million. The couple’s fraudulent crypto trading scheme, “Blessings Thru Crypto,” defrauded investors between 2021 and 2023.

The Griffises, who previously worked as realtors, solicited approximately $6.5 million from at least 145 individuals. The funds were purportedly managed by an advisor named “Coach Wendy” and traded on the nonexistent Apex Trading Platform. More than $4 million of the collected funds were sent offshore, with portions used to repay earlier investors in a Ponzi-like fashion.

CFTC Sanctions and Legal Actions

The Commodity Futures Trading Commission (CFTC) has permanently banned both individuals from trading in CFTC-regulated markets. In its announcement, the CFTC emphasized the need for vigilance against deceptive investment opportunities, particularly those that appear too good to be true.

According to the CFTC, the judgment includes $5.5 million in restitution for victims and a civil penalty exceeding $1.3 million. The agency is collaborating with other federal bodies to trace and potentially recover the misappropriated assets. The CFTC has reinforced its commitment to combating crypto-related fraud through ongoing partnerships with law enforcement agencies.

“The CFTC maintains that victims should remain vigilant against ‘too-good-to-be-true’ promises and verify the legitimacy of any investment opportunity.”

CFTC Communication

Impact on Crypto Markets and Investors

The fraudulent scheme primarily claimed to trade Bitcoin (BTC) and Ethereum (ETH) derivatives on the fictitious Apex Trading Platform. Most investor capital was diverted to unregulated offshore accounts or used for personal spending by the Griffises. The scheme did not affect any decentralized finance protocols, on-chain tokens, or major cryptocurrency platforms.

This scenario is reminiscent of earlier fraudulent operations in the crypto space, such as PlusToken and BitConnect, which also claimed to engage in professional trading activity. These cases often resulted in similar multi-million dollar judgments. There have been no public statements from prominent industry figures regarding this recent case.

Lack of Institutional Backing and Funding

“Blessings Thru Crypto” did not receive any legitimate grants, venture capital funding, or institutional support. All funds were sourced from retail investors, many of whom were approached through personal or community contacts. This highlights the need for individual investors to thoroughly investigate investment opportunities before committing their funds.

No GitHub, Discord, Twitter developer, or community activity was associated with the fraudulent platform, given its purely off-chain nature. The scheme exclusively targeted retail investors without interacting with established blockchain protocols or legitimate digital assets.

For a detailed overview of CFTC press releases, you can view them here.