Tennessee Couple Hit With $6.8 Million Penalty for 'Blessings of God Thru Crypto' Fraud

Core Viewpoint - A Tennessee couple has been ordered to pay over $6.8 million in restitution and penalties for defrauding investors through a fake crypto trading scheme, highlighting ongoing issues of fraud in the cryptocurrency space [1][2]. Group 1: Fraud Details - Michael and Amanda Griffis operated a fraudulent commodity pool named "Blessings of God Thru Crypto" from 2021 to 2023, using their real estate connections to attract investors [2][3]. - The couple convinced 145 investors to contribute $6.5 million, falsely claiming profits would be generated through crypto futures trading on a platform they presented as legitimate [3]. - Under the court order, the Griffises are required to repay over $5.5 million to victims and face an additional civil monetary penalty of $1.35 million [3][4]. Group 2: Financial Misappropriation - Over $4 million was funneled offshore after being deposited into the fake exchange, while the remaining funds were used to cover the couple's personal debts and expenses [4]. - Only approximately $855,000 was returned to participants in Ponzi-style payouts, indicating significant financial mismanagement [4]. Group 3: Regulatory Actions and Patterns - The ruling includes lifetime bans on the couple from commodity trading and CFTC registration, along with prohibitions against future violations of federal commodity laws [4]. - This case is part of a broader trend of fraudsters exploiting community trust, with other recent cases involving significant financial losses [5]. Group 4: Warning Signs and Recovery Challenges - Investors may have overlooked warning signs, such as the lack of registered company details on the exchange website, which could have indicated fraudulent activity [6]. - Experts warn that fraudsters often seek quick profits and can quickly move funds across borders, complicating recovery efforts for victims [7].