According to Foresight News, the U.S. Commodity Futures Trading Commission (CFTC) has issued an order against Jacob Orvidas, filing charges and reaching a settlement. The order finds that Orvidas fraudulently solicited at least four individuals (pool participants) to engage in leveraged Bitcoin trading in a commodity pool, losing almost all of the trading funds, and then lied to the pool participants about the losses and available funds. The order also finds that Orvidas failed to register as a commodity pool operator. The order requires Orvidas to pay over $2 million in restitution and $500,000 in civil penalties, and to cease and desist from further violations of the Commodity Exchange Act. Additionally, the order imposes a 10-year registration and trading ban on Orvidas.
Between October 2017 and July 2020, Orvidas solicited at least four participants to trade leveraged Bitcoin in his commodity pool, promising them excessive profits and capital protection. The participants contributed over $2 million to the pool, after which Orvidas lost almost all of the trading funds. To cover up the losses, Orvidas provided the pool participants with fabricated spreadsheets, claiming to reflect trading profits and high account balances, and lied about being unable to pay these profits and return the principal. Ultimately, the participants lost over $2 million.
