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Court Rules Against Debiex in $2.5 Million "Pig Butchering" Case

Key Takeaways

  • Debiex must pay $2.5 million after a US federal court ruled it ran a romance-based crypto scam;
  • The scheme tricked victims into investing by posing as successful traders;
  • Debiex faked trading results while redirecting deposits to hidden wallets.​

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Court Rules Against Debiex in $2.5 Million "Pig Butchering" Case

A federal court in Arizona has ruled that Debiex, a crypto trading platform, must pay about $2.5 million after failing to respond to allegations from the US Commodity Futures Trading Commission (CFTC).

The platform was accused of running a romance investment scam, commonly known as "pig butchering".

On March 13, Judge Douglas Rayes approved the CFTC’s request for a summary judgment. The ruling requires Debiex to return around $2.26 million taken from victims and pay an additional penalty of nearly $221,500. The judge also stated that Debiex’s failure to answer the charges was not due to a reasonable excuse.

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According to the CFTC, Debiex marketed itself as a "Blockchain Network Decentralized perpetual contract trading platform", which promotes futures trading and so-called "Mining transactions".

The scam relied on fake personas, with Debiex’s staff pretending to be successful traders. They engaged in frequent messaging and shared personal photos to make their stories seem believable.

After victims signed up and transferred funds, Debiex provided false account balances and fake trading results to make it appear as if their investments were growing. However, the CFTC stated that none of the trading activity was real, and the deposits were moved between different wallets to hide their final destination.

The scheme reportedly targeted at least five people, who collectively deposited about $2.3 million. Rather than being used for trading, the funds were redirected elsewhere.

Meanwhile, Rowland Marcus Andrade, the founder of AML Bitcoin (ABTC), was recently convicted of wire fraud and money laundering. How did the case unfold? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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