CFTC secures $31 mn judgment in Fundsz crypto fraud case

A federal judge in Florida ordered Brian Early and Alisha Ann Kingrey to pay more than $31 mn in restitution and civil penalties for their roles in a cryptocurrency and precious metals fraud involving Fundsz, according to the U.S. Commodity Futures Trading Commission.

The U.S. District Court for the Middle District of Florida entered default judgments against Early and Kingrey, who were defendants in a CFTC lawsuit filed in 2023.

The case involved Fundsz, an unincorporated trading operation that the regulator accused of defrauding more than 9,000 people through promises of guaranteed investment returns.

The court ordered Early and Kingrey to pay $15.73 mn in restitution and another $15.75 mn in civil monetary penalties. They were also permanently barred from trading and registering with the CFTC and prohibited from further violations of the Commodity Exchange Act and related regulations.

According to the CFTC, Early and Kingrey served as Fundsz board members and social media moderators. The court found they made false or misleading statements about expected profits, investment risks and Fundsz’s historical trading performance.

Fundsz told participants their money would be traded through a proprietary algorithm and available for withdrawal after 180 days with interest. The CFTC alleged the company didn’t trade customer funds as represented and instead reported fictional weekly returns.