CFTC: Wolf Capital Misled 3,000 Investors with 3.5% Daily Cryptocurrency Return

BlockBeats News, December 23rd, according to financefeeds News, the U.S. Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Wolf Capital Crypto Trading LLC and its founder Travis Ford, alleging that they operated a fraudulent investment scheme that raised over $10 million from retail investors. The lawsuit has been filed in the U.S. District Court for the Northern District of Oklahoma, alleging that the company operated a Ponzi scheme structure, with promised daily returns having no basis in actual trading activity.

According to the submitted documents, Wolf Capital attracted over 3,000 investors from October 2022 to December 2024 by promoting a daily stable return of up to 3.5%. The CFTC believes that these claims do not hold mathematically and are not supported by any verifiable commodity-related cryptocurrency trading strategy. The regulatory agency alleges that new investors' funds were used to pay returns to early participants, following a typical Ponzi scheme pattern.