Court Orders Restitution, Fines in Prime FX Cryptocurrency Fraud Case

News | June 26, 2024 By:

On Wednesday, June 12, 2024, the US District Court for the District of Massachusetts ordered two defendants to pay restitution and civil monetary penalties for defrauding investors in a cryptocurrency trading scheme.

The court ruled that Daniell Liggins and Victor Edeh violated commodity trading laws by misleading customers of Prime FX, a website that claimed to offer trading services in digital currencies such as bitcoin and foreign exchange markets. According to the court order, Prime FX solicited funds from over 100 investors in the US and abroad starting in 2016, falsely representing that customer money would be used to trade cryptocurrencies and Forex for promised profits.

However, the court found that Prime FX was never properly registered as a business and had no real trading operations. Instead of trading customer funds, Liggins and Edeh redirected investors to send money to their personal bank accounts. The order stated that Liggins received over $11,000 from two victims through a fake company she set up called “Global Prime,” then closed the bank account and kept the remaining funds without ever trading with the money. Edeh similarly received over $20,000 transferred through other defendants involved in the scheme and did not use the funds for their intended purpose of cryptocurrency trading.

As a result, the court determined that Liggins and Edeh violated the Commodity Exchange Act by defrauding customers through misrepresentations and omissions regarding the use of invested money. The order granted default judgment against the defendants, who did not respond to the civil complaint filed by the Commodity Futures Trading Commission (CFTC).

The court mandated Liggins pay $2,400 in restitution to victims and a $429,028 civil monetary penalty. Edeh must pay $15,223 in restitution and the same $429,028 fine. The National Futures Association will oversee payments and distribute recovered funds to reimbursed defrauded investors.

Please contact BlockTribune for access to a copy of this filing.