The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Debiex, a crypto exchange, and Zhang Cheng Yang, a potential “money mule,” for allegedly engaging in a ‘pig butchering’ scam to defraud investors of $2.3 million. The complaint was filed on January 19 in the U.S. District Court for the District of Arizona.
The CFTC claims that unidentified individuals related to Debiex developed friendly or romantic relationships with potential clients through deception to encourage them to open accounts and deposit funds. These individuals targeted specifically Asian Americans, using U.S.-based social media platforms to lure them into the scam.
The regulator alleges that Debiex misappropriated approximately $2.3 million from five customers as part of the scheme. The CFTC seeks restitution, disgorgement, penalties, trading bans, and permanent injunctions for these customers. Ian McGinley, CFTC’s Director of Enforcement, emphasized the agency’s commitment to securing justice for victims and holding fraudsters accountable.
According to the CFTC, Debiex falsely claimed to be trading on behalf of customers while actually embezzling their funds. The Debiex website only mimicked a legitimate live trading platform, and the ‘trading accounts’ were entirely fictitious, with no real trading conducted on behalf of customers.
CFTC Commissioner Kristin Johnson noted that this case marks the second ‘pig butchering’ lawsuit filed by the regulator in recent months. The scammers used common language and identity markers to gain trust before exploiting the relationship. Johnson urges the public to educate themselves about potential fraud and abuse in the crypto market by visiting the CFTC’s investor advisory page.