CFTC charges Tennessee couple over ‘Blessings of God Thru Crypto’ scheme
A Tennessee husband and wife are facing charges over “Blessings of God Thru Crypto” — an allegedly fraudulent investment scheme that swindled at least $6 million from over 100 victims in just six months.
A July 24 complaint from the Commodity Futures Trading Commission (CFTC) said Michael and Amanda Griffis used the connections they made in their real estate business to convince people to fork their savings over to a multi-million dollar investment pool between July 2022 and January 2023.
These included mortgage brokers and former customers of their real estate business, it said.
The CFTC charged husband and wife realtors of Tennessee for operating a $6M digital assets commodity pool scheme. Learn more: https://t.co/pPq9hV8qeU
— CFTC (@CFTC) July 25, 2023
“Despite having no trading or other relevant experience, the defendants successfully convinced over 100 people to send them over $6 million to participate in a commodity pool called ‘Blessings of God Thru Crypto,’” the CFTC said.
As part of the scheme pool participants were told their funds would be used to trade crypto futures contracts, however, not a single trade was ever conducted, said the CFTC.
“The defendants falsely represented that pool funds would be safe and under their control, that pool participants could expect high gains, and that the defendants would use pool funds to trade ‘crypto futures.’”
Instead, around $4 million of the pooled funds were transferred to digital wallets outside of the Griffis’ control and more than $1 million were misappropriated to pay off personal debt and expensive items over a number of months, the CFTC alleged.
This included $10,000 in college tuition for family members, $20,000 for an all-terrain vehicle and $335,000 to pay off credit card debt.
Related: CFTC issues $54M default judgment against trader in crypto fraud scheme
The couple has been charged with defrauding over 100 victims and failing to register with the CFTC.
In its complaint, it requested a permanent injunction against the Griifis and any potential collaborators, preventing them from participating in any future transactions involving commodity interests, along with full restitution to anyone that sustained losses from the scheme, and requested the court impose civil penalties against the Griffis.
The CFTC warned full restitution will likely be difficult given that the alleged wrongdoers will likely have insufficient funds or assets.
According to their respective LinkedIn profiles, Michael and Amanda Griffis are affiliated with Exit Realty Screamin’ Eagle, based in Clarksville, Tennessee. Amanda is listed as a “Broker/Co-Owner,” while Michael is listed as a “Realtor.”
Cointelegraph contacted the Griffis for comment but did not immediately receive a response.
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The government has won a long-running legal challenge about its decision to continue allowing the sale of spare parts for F-35 fighter jets to Israel, while suspending other arms licences over concerns about international humanitarian law in Gaza.
But a key part of its case has highlighted mixed messaging about its position on the risk of genocide in Gaza – and intensified calls for ministers to publish their own assessment on the issue.
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Lawyers acting for the government told judges “the evidence available does not support a finding of genocide” and “the government assessment was that…there was no serious risk of genocide occurring”.
Therefore, they argued, continuing to supply the F-35 components did not put the UK at risk of breaching the Genocide Convention.
This assessment has never been published or justified by ministers in parliament, despite numerous questions on the issue.
Some MPs argue its very existence contrasts with the position repeatedly expressed by ministers in parliament – that the UK is unable to give a view on allegations of genocide in Gaza, because the question is one for the international courts.
For example, just last week Deputy Prime Minister Angela Rayner told PMQs “it is a long-standing principle that genocide is determined by competent international courts and not by governments”.
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Situation in Gaza ‘utterly intolerable’
‘The UK cannot sit on our hands’
Green MP Ellie Chowns said: “The government insists only an international court can judge whether genocide is occurring in Gaza, yet have somehow also concluded there is ‘no serious risk of genocide’ in Gaza – and despite my urging, refuse to publish the risk assessments which lead to this decision.
“Full transparency on these risk assessments should not be optional; it is essential for holding the government to account and stopping further atrocity.
“While Labour tie themselves in knots contradicting each other, families are starving, hospitals lie in ruins, and children are dying.
“The UK cannot sit on our hands waiting for an international court verdict when our legal duty under the Genocide Convention compels us to prevent genocide from occurring, not merely seek justice after the fact.”
‘Why are these assessments being made?’
“This contradiction at the heart of the government’s position is stark,” said Zarah Sultana MP, an outspoken critic of Labour’s approach to the conflict in Gaza, who now sits as an independent after losing the party whip last summer.
“Ministers say it’s not for them to determine genocide, that only international courts can do so. Yet internal ‘genocide assessments’ have clearly been made and used to justify continuing arms exports to Israel.
“If they have no view, why are these assessments being made? And if they do, why refuse to share them with parliament? This Labour government, in opposition, demanded the Tories publish their assessments. Now in office, they’ve refused to do the same.”
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Routes for Palestinians ‘restricted’
Judges at the High Court ultimately ruled the case was over such a “sensitive and political issue” it should be a matter for the government, “which is democratically accountable to parliament and ultimately to the electorate, not the court”.
Dearbhla Minogue, a senior lawyer at the Global Legal Action Network, and a solicitor for Al-Haq, the Palestinian human rights group which brought the case, said: “This should not be interpreted as an endorsement of the government, but rather a restrained approach to the separation of powers.
“The government’s disgraceful assessment that there is no risk of genocide has therefore evaded scrutiny in the courts, and as far as we know it still stands.”
Pics: Reuters
What is the government’s position?
Government lawyers argued the decision not to ban the export of F-35 parts was due to advice from Defence Secretary John Healey, who said a suspension would impact the whole F-35 programme and have a “profound impact on international peace and security”.
The UK supplies F-35 component parts as a member of an international defence programme which produces and maintains the fighter jets. As a customer of that programme, Israel can order from the pool of spare parts.
Labour MP Richard Burgon said the ruling puts the government under pressure to clarify its position.
“This court ruling is very clear: only the government and parliament can decide if F-35 fighter jet parts – that can end up in Israel – should be sold,” he said.
“So the government can no longer pass the buck: it can stop these exports, or it can be complicit in Israel’s genocide in Gaza.
“On many issues they say it’s not for the government to decide, but it’s one for the international courts. This washing of hands will no longer work.”
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Dozens dead in Gaza after Israeli strikes
Israel has consistently rejected any allegations of genocide.
Prime Minister Benjamin Netanyahu branded a recent UN report on the issue biased and antisemitic.
“Instead of focusing on the crimes against humanity and war crimes committed by the Hamas terrorist organisation… the United Nations once again chooses to attack the state of Israel with false accusations,” he said in a statement.
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‘Gaza disinformation campaign is deliberate’
The UK government has not responded to requests for comment over its contrasting messaging to parliament and the courts over allegations of genocide.
But in response to the judgement, a spokesperson said: “The court has upheld this government’s thorough and lawful decision-making on this matter.
“This shows that the UK operates one of the most robust export control regimes in the world. We will continue to keep our defence export licensing under careful and continual review.
“On day one of this Government, the foreign secretary ordered a review into Israel’s compliance with international humanitarian law (IHL).
“The review concluded that there was a clear risk that UK exports for the IDF (Israel Defence Forces) in the Gaza conflict might be used to commit or facilitate serious violations of IHL.
“In contrast to the last government, we took decisive action, stopping exports to the Israeli Defence Forces that might be used to commit or facilitate serious violations of international humanitarian law in Gaza.”
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