CFTC seeks more info about Simple Wealth suspected of FX and binary options fraud

Maria Nikolova

The US regulator wants Cody M. Wilson, the individual behind Simple Wealth, to comply with administrative subpoena.

The United States Commodity Futures Trading Commission (CFTC) has turned to Court in an attempt to secure more information about the activities of Simple Wealth amid suspicions that this entity is involved in Forex and binary options fraud.

On November 6, 2019, the CFTC filed a Motion to Compel with the Columbia District Court, requesting that Cody M. Wilson, the individual behind Simple Wealth, comply with a subpoena the regulator issued about a year ago.

On November 27, 2018, the CFTC through its Division of Enforcement, issued a subpoena to Cody M. Wilson. The Division issued the Subpoena based on information that suggested that Mr. Wilson may have misappropriated customer funds, or fraudulently solicited customers to pay (1) for training and trading tips regarding Forex or (2) for Mr. Wilson to trade binary options and Forex on customers’ behalves.

Mr. Wilson solicited customers through a variety of ventures, including an entity called Simple Wealth LLC.

Information obtained by the CFTC indicates that Mr. Wilson and his associates may have maintained a number of social media accounts to solicit customers, including Simple Wealth, Simple Wealth Academy, Team Unemployable, Young Millionaires and Onthehouse. Mr. Wilson and the Cody Wilson Entities offered products and services that went by a variety of names, including Simple Wallet, Simple Wealth Auto Trading, Greener Pastures, and the Simple Wealth Signal Group.

According to complaints received by the Commission, prospective customers were told that investing with Mr. Wilson or the Cody Wilson Entities would yield a significant payout in a short period time.

Certain individuals told the CFTC that they were unable to make withdrawals from their accounts with Mr. Wilson and Simple Wealth upon request. The investigative team obtained information suggesting that at some point in 2018, Mr. Wilson told customers that his trading accounts had been hacked, that all of the investors’ money had been stolen, and that neither he nor Simple Wealth would be able to return the individuals’ original investment or pay the returns the individuals had been promised.

In February 2019, Mr. Wilson produced a handful of documents in response to the Subpoena, but he has not responded to a majority of the Subpoena’s requests, and his limited response to the other requests appears entirely inadequate.

Now, the CFTC requests that the Court issue an order requiring Respondent Cody M. Wilson to show cause why he should not be compelled to comply with the administrative subpoena issued by the Commission on November 27, 2018. Should Mr. Wilson not show good cause, the Commission requests that the Court issue a subsequent order requiring Mr. Wilson to comply immediately in all respects with the Subpoena, including by

  • (a) producing to the Commission all documents specified in Schedule A to the Subpoena that are in his possession, custody, or control, and
  • (b) personally appearing before the Commission at its headquarters in Washington, D.C. to provide testimony.

Read this next

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

<