CFTC to push for default judgment against “Coin Signals” operator
The United States Commodity Futures Trading Commission (CFTC) will be pushing for a default judgment against “Coin Signals” operator Jeremy Spence, who is charged with fraud for operating a Ponzi scheme.
This becomes clear from a letter filed by Senior Trial Attorney in the Division of Enforcement of CFTC on April 12, 2021. The document, submitted at the New York Southern District Court and seen by FX News Group, states that the CFTC expects to move for a Default Judgment in the coming weeks. given the defendant’s failure to serve an answer, otherwise move, or appear in this matter.
Let’s recall that the CFTC filed its complaint against Spence in January 2021. Spence was charged with fraud for operating a Ponzi scheme involving digital assets such as bitcoin and ether in which he fraudulently solicited more than $5 million of investments from individuals.
The complaint alleges that Spence, at times operating as “Coin Signals,” ran a Ponzi scheme in which he fraudulently solicited and obtained digital assets such as bitcoin and ether worth more than $5 million from customers. According to the complaint, Spence’s trading resulted in significant trading losses and, as in all Ponzi schemes, his payouts of supposed profits to customers in actuality consisted of other customers’ misappropriated funds.
Spence allegedly engaged in numerous efforts to conceal his misconduct, including misrepresenting his trading profitability and the amount of assets he had under management, misappropriating customer funds, and issuing false performance statements. As stated in the complaint, Spence eventually admitted to his customers that he had engaged in “lies and deceit.”
In its continuing litigation, the CFTC seeks restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations.
Let’s recall that there are criminal proceedings against Spence. In January 2021, the United States Attorney for the Southern District of New York announced the unsealing of a Complaint in Manhattan federal court charging Spence with commodities fraud and wire fraud offences.