In an Arizona court, a federal judge ordered crypto platform Debiex to pay nearly $2.5 million. The court ruled after the US Commodity Futures Trading Commission (CFTC) filed a suit in January 2024.
The CFTC accused Debiex of running a romance scam scheme. The order affects victims who lost funds during a fake trading scam. It is also linked to fraudulent social media tactics. The court decision came after Debiex failed to respond to the suit.
Court Order and Penalty
Judge Douglas Rayes granted a summary judgment. He ruled that Debiex must return about $2.26 million. The judge added a civil penalty of nearly $221,500. Rayes said the company did not show any excuse for its lack of response.
The judge found no proof of “excusable neglect.” The court decision shows a strict stance against such scams.
Scam Details
The CFTC claimed that Debiex staff ran a so-called “pig butchering” scam—the scheme worked by building false relationships with victims on social media. The staff pretended to be successful traders.
They sent photos and messages to build trust. Victims were told they could earn profits through futures trading and mining transactions.
Once a victim sends their crypto, they receive fake information about balances and trades. This false information misled the victims about their investments.
The scam managed to hook five victims. These victims deposited a total of around $2.3 million. Instead of trading, Debiex diverted the funds to various digital wallets.
The CFTC stated that the funds were hidden among many accounts. This tactic made it hard to track where the money went.
Involvement of Zhāng Chéng Yáng and OKX
The CFTC also accused Zhāng Chéng Yáng of acting as a “money mule” for Debiex. It was claimed that his crypto wallets received funds from the scam. On March 12, Judge Rayes granted a default judgment against him.
The judge found that he controlled a crypto wallet with OKX. OKX was holding digital assets that were stolen from the victims.
The court ordered that nearly 63 Ether and $5.70 worth of Tether be transferred to a victim. The decision shows that the authorities are targeting all parties involved in the scam.
Fraudulent Scheme Overview
Debiex’s managers used social media to lure potential victims. They created websites that looked like genuine trading platforms. These websites promoted futures trading and mining opportunities.
Staff members posed as women and shared images to gain trust. They claimed to be expert digital asset traders. Once a relationship was built, they persuaded the victims to invest. After receiving the funds, they provided false trading information.
The scheme was designed to hide the true destination of the funds. The evidence suggested that the customer assets were simply shuffled among many wallets.
Blockchain Report and Future Risks
A recent report has revealed alarming figures. The report noted that scam-linked crypto wallets received $9.9 billion in 2024. Experts believe that the total could rise to $12.4 billion by the year’s end.
This study highlights a rising trend in fraudulent crypto activities. It shows that scams like Debiex’s are part of a larger problem in the digital asset world.
The court ruling against Debiex and its associates marks a strong stand against crypto scams. The case warns other platforms and potential scammers. Authorities are working to uncover and penalize fraud in the crypto market.
This decision sends a clear message to anyone who uses deception to steal funds. It also encourages victims to report suspicious activities. As regulators intensify their efforts, the crypto world may see tighter controls and better protection for investors.
Also Read: India Joins Hands With Google and Facebook To Cracks Down Pig Butchering Scams