CFTC secures over $30 million judgment against Fundsz defendants

On Wednesday, the U.S. District Court for the Middle District of Florida entered a default judgment against Brian Early and Alisha Ann Kingrey and ordered them to pay over $30 million in fines. The Commodity Futures Trading Commission (CFTC) said the two participated in an alleged digital assets and precious metals fraud scheme involving an unincorporated Fundsz entity and its website. Early and Kingrey were board members and moderators of the entity's Telegram group. The court found that they materially misled investors about Fundsz's expected profits, past trading performance and risks of loss. The court also found that they falsely represented that a proprietary algorithm could trade investors' money and that investors could later withdraw their funds with interest. The court found that Early and Kingrey walked back profitability claims and worked to remove Fundsz's social media presence after learning of the CFTC investigation. On Wednesday, the court also entered consent orders involving Rene Larralde and Juan Pablo Valcarce, according to the CFTC. Larralde died in 2023, and Rachel Larralde was substituted as a defendant. The consent order requires Rachel Larralde to turn over possession and control of the Larralde Residence as is. Valcarce's consent order permanently bars him from having cryptocurrency or precious metals traded on his behalf and from further violations of CFTC rules.