CFTC files charges against four defendants in bitcoin investment fraud suit

The Commodity Futures Trading Commission said Monday that it had charged three Texas residents and one Florida resident for their role in defrauding investors of nearly $1 million via an alleged bitcoin investment fraud scheme.

The agency alleged that Joel Castaneda Garcia, Mayco Alexis Maldonado Garcia, Cesar Castaneda, and Rodrigo Jose Castro Molina “falsely represented to actual and potential customers that their business, named Global Trading Club (GTC), employed ‘master traders’ who had years of experience trading ‘crypto currency,’ and used ‘cutting edge trading robots’ to trade Bitcoin for customers ’24 hours a day, 7 days a week.'”

“Customers were also falsely promised a bonus for referring others, in the form of a multi-level marketing scheme. To conceal their fraud, the defendants caused misleading trading statements to be posted online,” the agency went on to explain.

In sum, 27 investors were impacted by the fraud, taking in “at least $989,000”

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