According to the CFTC, Debiex staff were categorized into three groups. The “agents” would reach out to potential clients on social media platforms and persuade them to open and fund trading accounts with Debiex, promising significant returns. The “technical support” team would assist clients in setting up and managing their trading accounts. Lastly, the “money mules” would provide their cryptocurrency addresses to Debiex to receive client funds. One of the main defendants, Zhāng Chéng Yáng, falls into this category.
The CFTC alleges that Debiex’s websites simulated real trading accounts, even though the platform did not actually engage in cryptocurrency trading. Instead, the management reportedly misappropriated funds deposited by investors, sending fraudulent screenshots to deceive clients.
The CFTC is seeking an administrative fine against the defendant and aims to prohibit Debiex from participating in trading activities. Additionally, the agency wants Debiex to return the funds to investors. The CFTC hopes that the court will take appropriate legal action against the platform.
In a separate announcement in November, the CFTC warned that it would pursue legal action against cryptocurrency exchanges that try to bypass Know Your Customer (KYC) procedures, regardless of their geographical location.