CFTC secures $31M court order against digital asset fraud scheme that duped 14,000 investors

The U.S. Commodity Futures Trading Commission has obtained a court order requiring two individuals to pay over $31 million in connection with a digital asset and precious metals fraud that ensnared more than 14,000 participants across the country.

How the scheme worked

The operation promised returns exceeding 3% per week. Defendants claimed a sophisticated platform was automatically generating profits through digital asset and precious metals trading on participants’ behalf.

In reality, no commodity trading occurred. The CFTC’s complaint, filed on July 31, 2023, alleged that defendants were not registered with the agency and were not conducting the trades they claimed to be making.

The cast of defendants included Rene Larralde, Juan Pablo Valcarce, Brian Early, and Alisha Ann Kingrey, along with a platform called Fundsz. Over 14,000 people were solicited through the scheme, and at least 9,100 investors suffered estimated combined losses of $15.7 million.

Where things stand now

Larralde passed away during the proceedings. Valcarce reached a consent settlement with the CFTC. Fundsz was formally dismissed as a defendant in January 2026 after settlements were resolved with other parties. Default judgments against Early and Kingrey remain pending.

A court-appointed receiver was brought in to track down and preserve assets. By mid-2026, that receiver had recovered over $4 million for victim compensation, against estimated net losses of $15.7 million.

The $31 million figure attached to the court order reflects the totality of funds solicited through the scheme, not the final restitution number that victims will actually see.

What regulators and investors should take from this

Compounded over a year, a 3% weekly return rate would turn $10,000 into roughly $4.6 million.

The CFTC’s use of asset freezes and a receiver early in the process reflects lessons learned from prior cases where defendants moved or spent assets before courts could act.

For investors evaluating platforms that promise algorithmic or automated returns on digital assets or commodities, the CFTC maintains a public database of registered entities. In this case, the absence of registration was not a minor administrative detail — it was a defining feature of the fraud.

With default judgments against Early and Kingrey still pending, the legal process has not fully concluded. The practical recovery for victims will depend on what assets remain traceable and collectible as proceedings continue.