Pastor Sued By CFTC For Alleged $6M Crypto Ponzi Scheme

The United States Commodity Futures Trading Commission (CFTC) Files Lawsuit Against Pastor Over Alleged $6M Crypto Ponzi Scheme.

The CFTC has filed a lawsuit accusing Francier Obando Pinillo, a pastor from Pasco, Washington, for orchestrating a $6 million cryptocurrency Ponzi scheme targeting over 1,500 individuals, including members of his church.

In a complaint submitted to a Spokane federal court on Dec. 9, the CFTC alleged that Pinillo promoted fraudulent investment opportunities to his church congregants and via his social media, promising users attractive rewards.

Pinillo claimed to be the CEO of Solanofi, Solano Partners Ltd., and Solano Capital Investments, where he said had developed a “Solano ecosystem” in whch he traded Bitcoin, Ether, and Tether on behalf of his clients.

Misrepresentation and Misuse of Funds

The complaint detailed that between Nov. 1, 2021, and Dec. 31, 2023, Pinillo promised clients monthly returns of up to 34.9%, claiming these profits were generated through advanced trading bots and software. He further promoted a staking service through “Solanofi 2.0,” offering guaranteed profits for Bitcoin, Ether, Solana, Tether, and Dogecoin investments. To entice new participants, Pinillo offered a 15% referral fee and provided users with an online dashboard showing fabricated account statements.

According to the CFTC, the promised trading and staking services were entirely fictitious. “There was no automated trading program, no customer accounts, no actual trading, and no profits,” the complaint stated. Instead, Pinillo allegedly misappropriated all digital and fiat assets entrusted to him.

The lawsuit emphasized that Pinillo targeted unsophisticated investors, many of whom had little to no experience with digital assets or trading. The CFTC noted that his solicitations were primarily in Spanish, enabling him to exploit his role as a trusted community leader and pastor.

Legal Action and Relief Sought

The CFTC is seeking restitution for defrauded investors, forfeiture of all funds obtained through the scheme, a permanent trading ban, and an injunction against further violations.

Pinillo has not commented on the allegations, and information regarding his legal representation remains unavailable.

This case highlights ongoing regulatory efforts to address fraud in the cryptocurrency space, with the CFTC reporting a record $17 billion in crypto enforcement actions in 2024.