The U.S. CFTC orders Bitcoin leverage trading fraudsters to pay over $2.5 million in fines

ChainCatcher News, the U.S. Commodity Futures Trading Commission (CFTC) has issued an order while filing and settling charges against Jacob Orvidas. The order finds that Orvidas fraudulently solicited at least four individuals (pool participants) to engage in leveraged Bitcoin trading in a commodity pool, nearly losing all trading funds, and then falsely claimed to the pool participants about the losses and the availability of funds.

The order also finds that Orvidas was not registered as a commodity pool operator. The order requires Orvidas to pay over $2 million in restitution and a $500,000 civil penalty, and to cease and desist from further violations of the Commodity Exchange Act. Additionally, the order imposes a 10-year registration and trading ban on Orvidas.

Previously, from October 2017 to July 2020, Orvidas solicited at least 4 participants to trade leveraged Bitcoin in his commodity pool, promising them excessive profits and fund protection. The participants contributed over $2 million to the pool, after which Orvidas lost nearly all of the trading funds. To cover up the losses, Orvidas provided the pool participants with fictitious spreadsheets, claiming to reflect trading profits and high account balances, and falsely stated that he could not pay these profits and return the principal. Ultimately, the participants lost over $2 million.