A pastor from Washington state, Francier Obando Pinillo, has been indicted for allegedly defrauding over 1,500 people through a cryptocurrency scheme called Solano Fi.
Prosecutors claim Pinillo used his position to promote the venture, which he described as a “dream-inspired” opportunity promising guaranteed returns.
Authorities allege Pinillo convinced members of his congregation and online followers to invest, claiming Solano Fi traded cryptocurrencies like Bitcoin and Ethereum while offering risk-free monthly returns of up to 35%. However, instead of delivering on these promises, investors were shown fake account balances on the Solano Fi platform and were often denied withdrawals. Some were told they needed to recruit new participants to access their funds, a tactic commonly associated with pyramid schemes.
The scheme, which operated between November 2021 and October 2023, allegedly misappropriated $6 million, with funds diverted for personal use. Prosecutors claim Pinillo recruited victims through church connections, social media platforms, and Telegram groups, further expanding the scam’s reach.
The Justice Department and the Commodity Futures Trading Commission have charged Pinillo with multiple counts of fraud. If convicted, he faces up to 20 years in prison. Efforts to recover the stolen funds are underway, but officials warn that tracing crypto assets poses significant challenges.
A South Korean court recently handed down prison sentences to three individuals involved in a cryptocurrency investment scam that defrauded investors of approximately $460,000.
Indian authorities recently apprehended five individuals, including one woman, involved in a sophisticated crypto scam that defrauded a businessman of nearly $700,000.
Ben Armstrong, known in the crypto community as BitBoy, has recently been arrested in Florida, creating waves throughout the digital currency space.
A security flaw in Abracadabra’s smart contracts has led to a major exploit, with a hacker draining around 6,262 ETH—valued at roughly $13 million—from the protocol’s liquidity pools.