The U.S. Commodity Futures Trading Commission (CFTC) has initiated a legal proceeding against Debiex, a crypto exchange, for its involvement in an alleged fraud scheme. The exchange is accused of employing a “pig-butchering” romance scam, wherein individuals were targeted through social media, dating apps, or text messages to build relationships and trust before introducing a fictitious crypto investment opportunity. According to the CFTC, Debiex, operating through websites created in March 2022, targeted Asian Americans living in the United States, misappropriating approximately $2.3 million from about five victims.
The CFTC’s complaint contends that Debiex’s officers and managers cultivated romantic or friendly relationships with potential victims to encourage them to open and fund trading accounts on the exchange. However, instead of utilizing the funds for digital asset commodity trading, Debiex is alleged to have misappropriated customers’ digital assets. The exchange’s websites, presented as a live trading platform, were purportedly a façade, with no actual trading occurring on behalf of the customers.
