The CFTC accused the founder of Kikit & Mess Investments LLC of organizing a fraudulent scheme for investing in foreign currencies and crypto assets, and of embezzling more than $ 3.9 million.
According to Finance Magnates, the US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Texas resident Abner Alejandro Tinoco, founder of Kikit & Mess Investments. According to the CFTC, since September 2020, Tinoko has managed to raise more than $ 3.9 million from 61 clients. He stated that these funds will be invested in foreign currencies and digital assets, and the firm will manage the investment portfolios of attracted clients.
The Commission claims that Kikit & Mess Investments did not trade in its clients’ funds and made false statements about making profits so as not to arouse suspicion among investors. It turned out that Tinoko embezzled the money received, using it to pay for personal expenses: for renting a private jet, a car and a luxury mansion, as well as for buying real estate.
The CFTC requires Tinoko to pay damages to all victims affected by his fraudulent scheme and pay a monetary fine. The regulator also established a permanent ban on Tinooko from registering firms related to financial activities.
Earlier this month, the agency accused operators of the Prime FX platform for trading bitcoin and foreign currencies of defrauding investors in the amount of $ 1.2 million. In addition, in September, the CFTC fined 12 firms from New York for illegal trading in cryptocurrency options.
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