The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against a pastor in Washington, accusing him of running a $6 million cryptocurrency Ponzi scheme, defrauding about 1,500 people, including his own parishioners.
The Commodity Futures Trading Commission (CFTC) has officially filed a lawsuit against Francier Obando Pinillo, a pastor at a Spanish church in Pasco, Washington, in the federal court in Spokane on December 9.
The CFTC alleges that Pinillo engaged in fraudulent and misappropriation of assets through an illegal multi-level marketing scheme involving cryptocurrencies, causing an estimated $6 million in damages to around 1,500 victims. The case once again sounds the alarm about the potential risks in the cryptocurrency market, especially when fraudsters exploit the trust of the religious community for personal gain.
Exploiting trust, creating a fake "ecosystem"
According to the lawsuit, from November 2021 to December 2023, Pinillo claimed to be the CEO of Solanofi, Solano Partners Ltd., and Solano Capital Investments. He claimed these companies had developed the Solano ecosystem, trading various cryptocurrencies such as Bitcoin, Ether, Tether, and many others on behalf of clients.
Pinillo promised investors, mostly parishioners and his social media followers, monthly returns of up to 34.9% through the Solanofi platform, claiming to use bots and special software for trading.
Not only in trading, Pinillo also provided staking services for Bitcoin, Ether, Solana, USDT, and Dogecoin through Solanofi 2.0, "guaranteeing profits" for clients. To build trust and attract more participants, Pinillo provided users with an online dashboard displaying fake account statements, and also encouraged them to refer others with a 15% commission.
However, the CFTC claims that all these statements and account reports are fraudulent. In reality, there was no automated trading program implemented, no customer accounts, no trades executed, and no profits generated. All the cryptocurrency and cash that clients transferred have been misappropriated by Pinillo.
The CFTC emphasizes that Pinillo targeted inexperienced clients with little or no knowledge of digital asset trading, commodity trading, or staking. The use of Spanish in most of Pinillo's solicitations is seen by the CFTC as a ploy to exploit the trust from his position as a pastor in the Spanish-speaking community.
The CFTC is seeking restitution for the victims, disgorgement of all funds obtained from this Ponzi scheme, and a permanent trading ban against Pinillo. Currently, information about Pinillo's lawyer has not been disclosed, and Pinillo himself has not responded to media requests for comment.
