For the first time since its restructuring, the U.S. CFTC has taken action against a cryptocurrency fraud case

The U.S. Commodity Futures Trading Commission (CFTC) has announced a consent order, accusing New York resident Rashawn Russell of participating in a digital asset trading scheme from 2020 to 2022, where he lured investors into injecting cryptocurrencies into fraudulent funds. According to the indictment, Russell misappropriated approximately $1.5 million through this scheme and admitted to telecommunications fraud in the Eastern District Court of New York.

The lawsuit filed by CFTC on January 16 stated: "Russell assured investors that they would not suffer losses and in some cases guaranteed at least a 25% return. In fact, Russell intentionally and/or recklessly made false or misleading statements to solicit and retain investors."

This enforcement case is one of the first actions taken by the agency since Acting Chair Caroline Pham announced on February 4 that CFTC will restructure its enforcement department's focus to combat fraudulent activities.

The commission said it plans to divide enforcement case responsibilities into two working groups, one focusing on retail fraud and another focusing on "complex frauds and manipulations."