CFTC settles charges against crypto trading firm J Squared

Rick Steves

The CFTC alleged Mr. Gherman made false and misleading statements regarding the likelihood of profit and the risk of loss. Customers suffered losses totaling over $247,000.

The Commodity Futures Trading Commission has settled charges against Jozef Gherman and J Squared LLC – of which he was the co-founder, CEO, and owner – for false and misleading statements while soliciting more than $300,000 from over 40 individuals to invest in digital assets.

Mr. Gherman and J Squared will pay a $150,000 civil monetary penalty and $247,110 in restitution and addition to being banned from trading or other activity on any CFTC-registered entity for 10 years.

Vincent McGonagle, Acting Director of Enforcement at CFTC, said: “The CFTC will continue to work to protect participants from false and misleading solicitation practices and hold those engaging in such practices, including individuals, accountable.”

The CFTC found that, from at least June 2017 through at least June 2018, Mr. Gherman and J Squared solicited and accepted funds in the form of digital currency and fiat cash from over 40 customers to trade virtual currencies, including Bitcoin, Bitcoin Cash, Ether and other alternative coins.

Mr. Gherman induced individuals to invest with J Squared using false and misleading statements regarding the firm’s growth and success as a company, its expanding clientele, and its ability to be selective in acquiring customers.

The CFTC also alleged Mr. Gherman made false and misleading statements regarding the likelihood of profit and the risk of loss. Customers suffered losses totaling over $247,000.

The financial watchdog has recently settled charges with Glenn Olson for his role in a binary options fraud. The order requires Olson to disgorge all of his ill-gotten gains, totaling $241,070.

The CFTC found Mr. Olson sold binary options to customers for Blue Bit using alias names between 2014 and 2018. The defendant admitted that, as part of the scheme, he and others misrepresented the profitability of trading, manipulated or fabricated purported trades in their customers’ accounts to the customers’ disadvantage, prevented customers from withdrawing funds, and misappropriated customer funds.

Mr. Olson admitted he took other actions to defraud customers while receiving disbursements totaling $241,070.30 and led customers to convert their Blue Bit account holdings into ATM Coin, a worthless cryptocurrency.

According to the order, at least 27 customers lost a total of $846,405 as a result of the fraudulent scheme. Mr. Olson and other defendants were ordered to pay that sum in restitution, but victims were cautioned that they might never recover the money lost because wrongdoers may not have sufficient funds or assets.

Read this next


Bitcoin payments app Strike launches in Europe

Bitcoin blockchain-based payments app Strike launched in Europe on Wednesday, allowing users in the region to buy, sell, and withdraw bitcoin (BTC).


Bandit Network’s Points SDK and Brave Ads Power Astar zkEVM’s Quest Platform “Yoki Origins”

“Yoki Origins,” supported by Bandit Network and Brave Ads, introduces a gamified and rewarding experience for Astar zkEVM users, marking a significant milestone in Web3 adoption.

Digital Assets

Crypto ETFs to debut in Hong Kong next week

Hong Kong has authorized six cryptocurrency-based spot ETFs set to launch on April 30, according to Bloomberg.


BlockDAG Among The Best New Crypto To Invest In Post 8 Billion Coins Sales; More On Bitcoin Cash Futures’ Launch & Solana Positive Predictions

Explore Solana’s ATH predictions to see whether it can rise after a $17B dip? BlockDAG sells 8 billion coins in presale as Bitcoin Cash Futures launch.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary:USD, FED, German IFO ,Gold April 24 ,2024

Mixed US economic data and Fed rate hike uncertainty are causing volatility in the EUR/USD pair, while the Eurozone and gold prices add another layer of complexity.

Market News, Tech and Fundamental, Technical Analysis

EURCHF Technical Analysis Report 24 April, 2024

EURCHF currency pair can be expected to rise further toward the next major resistance level 0.9840, which stopped the pervious waves C and B, as can be seen below.

Digital Assets

Binance’s CZ could stay in prison until 2027, wife begs for mercy

Changpeng “CZ” Zhao, the founder and former CEO of Binance, has apologized for his decisions and accepted “full responsibility” in a letter to U.S. District Judge Richard A. Jones.

Digital Assets

Monex Group expands crypto business with 3iQ takeover

Monex Group has completed the acquisition of a majority stake in 3iQ Digital Holdings, Inc., a Canadian digital asset investment fund manager, as part of its strategy to expand its crypto business.

Education, Fintech, Inside View

How to Get Into Fintech: Best Tips to Succeed

The Fintech sector is experiencing significant growth, with fresh opportunities emerging rapidly.  Innovations such as machine learning and cryptocurrency are revolutionising finance, leading to a need for trained experts.