A U.S. federal court has ruled against crypto platform Debiex, ordering it to pay back millions after it failed to respond to allegations that it operated as a romance scam ring. On March 13, Arizona federal Judge Douglas Rayes granted a motion for summary judgment in favor of the Commodity Futures Trading Commission (CFTC), which had sued Debiex in January 2024 over fraudulent activities.
According to the ruling, Debiex must return approximately $2.26 million that it allegedly stole from customers, along with a $221,500 civil penalty. Judge Rayes further noted that Debiex did not present any defense, stating there was no excusable reason for its failure to respond to the lawsuit.
Crypto Scam Used Fake Online Relationships to Target Victims
The CFTC accused Debiex of engaging in a sophisticated “pig butchering” scam, a deceptive tactic where fraudsters build fake romantic relationships with victims to gain their trust and persuade them to invest. The platform allegedly lured at least five victims, who collectively deposited $2.3 million, only to have their funds misappropriated.
As part of the scheme, Debiex also presented itself as a “Blockchain Network Decentralized perpetual contract trading platform”, claiming to offer futures trading and mining transactions. Scammers posing as women reportedly built rapport with victims over social media, sharing photos and engaging in continuous, affectionate messaging. They claimed to be highly successful digital asset traders, convincing targets to create accounts and transfer cryptocurrency.
However, once the funds were sent, Debiex manipulated account balances, showing fake trading positions and fictitious profits. The CFTC stated, “All of this information was most likely false.” The victims’ crypto assets were ultimately transferred across multiple digital wallets in an effort to hide their true destination.
Money Mule Ordered to Forfeit Crypto Holdings
Alongside Debiex, Zhāng Chéng Yáng was identified as a key player in the scheme. The CFTC accused Zhāng of acting as a “money mule,” holding stolen funds in a crypto wallet on OKX.
On March 12, Judge Rayes also issued a default judgment against Zhāng, ordering the transfer of his crypto holdings—$5.70 in Tether (USDT) and 63 Ether (worth $119,500)—to one of the scam’s victims. OKX, which had been preserving the funds voluntarily, has been directed to comply with the court’s order.
The case highlights the growing threat of crypto romance scams and the CFTC’s increasing efforts to crack down on fraudulent digital asset schemes.
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