CFTC charges New York man in crypto fraud case

Published 11/02/2025, 18:18
CFTC charges New York man in crypto fraud case

The US Commodity Futures Trading Commission (CFTC) issued a consent order against a New York resident, Rashawn Russell, for committing fraud in a digital assets trading scheme.

This enforcement action is one of the first under the CFTC’s new focus on fraud, especially in the crypto sector, as announced by acting Chair Caroline Pham earlier this month.

The scheme, which ran from 2020 to 2022, involved Russell soliciting investors to contribute cryptocurrency to a fraudulent fund. According to the CFTC’s complaint, Russell misappropriated approximately $1.5 million and has pleaded guilty to wire fraud in the US District Court for the Eastern District of New York.

The complaint, filed on January 16, details how Russell falsely guaranteed investors no loss and, in some cases, a minimum twenty-five percent return.

The CFTC’s recent enforcement case aligns with Pham’s February 4 announcement that the agency would restructure the Division of Enforcement’s priorities. The commission aims to create two task forces, one focused on retail fraud and the other on complex fraud and manipulation.

This shift in strategy occurs in the backdrop of the CFTC’s actions during the 2024 fiscal year under former Chair Rostin Behnam, which resulted in more than $17 billion in monetary relief. This was largely due to the agency’s proceedings against the crypto exchange FTX. The CFTC’s current approach indicates a move away from regulating by enforcement for crypto firms dealing with digital assets classified as commodities.

Meanwhile, the US Securities and Exchange Commission, another key financial regulator, announced in January its intention to form a crypto task force to devise a regulatory framework.

This follows the appointment of SEC Commissioner Mark Uyeda as acting chair after Gary Gensler’s departure. The US Senate is expected to consider the nomination of former commissioner Paul Atkins for a more permanent position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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