The CFTC brought charges against California-based Justby International Auctions.
The Commodity Futures Trading Commission (CFTC) has targeted California-based Justby International Auctions and its CEO, Cunwen Zhu, on accusations of crypto “romantic scams.”
CFTC Files An Accusation Titled “Romance Scam”
According to the CFTC, at least 29 customers transferred $1.3 million to Justby International Auctions. In the complaint, the company stated that people identified as “lawyers” reached out to customers via social media and pretended to have romantic relationships with customers during the account opening process.
The CFTC found that Justby misused clients’ funds and CEO Cunwen Zhu spent some of these funds for his personal use and transferred the rest to others. The agency claimed that customers’ money was not used for trading purposes, and that the company presented fake records, making it appear as if they were doing real business.
In his statement, CFTC Executive Director Ian McGinley said that as people turn to online relationships to escape the isolation brought by the pandemic, scammers see an opportunity to find a new target and take advantage of people.
The CFTC seeks compensation against Justby International Auctions and CEO Cunwen Zhu, seeking the return of unjustified profits, the imposition of civil fines, the introduction of trade bans, and a permanent action against CFTC regulations.
