Fake Trading Platform Busted: Court Orders Fraudsters to Repay Victims

A federal court has ordered the recovery of nearly $2.3 million for victims of a fraudulent digital asset trading scheme operated by Debiex. The U.S. District Court for the District of Arizona issued a default judgment on March 13, holding Debiex accountable for misappropriating customer funds. According to an announcement by the U.S. Commodity Futures Trading Commission (CFTC):

The order bans Debiex from trading in any CFTC regulated markets or registering with the CFTC. It also requires Debiex to pay a $221,466 civil monetary penalty and over $2.2 million in restitution.

The ruling follows a complaint filed by the CFTC, which accused Debiex of running a scam that deceived investors into believing they were participating in legitimate digital asset trading.

The court also took action to recover additional funds held by relief defendant Zhāng Chéng Yáng, a money mule whose digital asset wallet contained misappropriated customer funds. On March 12, a separate order directed that approximately $120,000 worth of digital assets still in Zhang’s wallet be returned to the victim from whom they were stolen.

According to the CFTC, Debiex tricked customers into depositing funds into fake trading accounts, only to steal their money. The agency detailed: “Instead of using the funds to trade on behalf of the customers, as promised, Debiex misappropriated the customers’ digital assets.” The CFTC further noted:

Unbeknownst to the customers, and as alleged, the Debiex websites merely mimicked the features of a legitimate live trading platform and the ‘trading accounts’ depicted on the websites were a complete ruse. No actual digital asset trading took place on the customers’ behalf.

While the court has ordered restitution, the CFTC warns that recovery is not always guaranteed, as wrongdoers may lack sufficient assets. The agency continues to encourage investors to verify firms before committing funds and report fraudulent activity to authorities.