Former Pastor Accused of $5.9M Crypto Fraud Targeting Church Members

A former Spanish-speaking church pastor in Washington state is facing accusations of orchestrating a $5.9 million crypto fraud.

According to a lawsuit filed by the Commodity Futures Trading Commission (CFTC), Francier Obando Pinillo allegedly exploited over 1,500 investors—many of them his own congregants—between November 2021 and December 2023. Promising “risk-free” profits through a proprietary trading bot, Pinillo claimed he could generate returns of up to 34.9% per month.

Operating under the name Solanofi Entities, Pinillo used his influence as a pastor, along with social media and other business fronts, to solicit digital and fiat assets. Investors were directed to transfer funds into accounts he controlled, allegedly to be traded on now-defunct platforms like FTX.

A Dashboard of Deception: Ponzi Scheme Mechanics

To maintain credibility, Pinillo provided investors with an online dashboard where they could view fabricated account balances and track supposed profits. Adding to the scheme’s allure, he introduced a multi-level marketing component, offering 15% referral fees to participants who recruited others into the program.

However, the CFTC alleges that no trading activities ever took place. The promised platform and proprietary trading bot were fictitious, and the account statements were fraudulent. Pinillo reportedly used new investor funds to pay fake profits and referral fees to earlier participants, mirroring the classic Ponzi scheme model.

Regulatory Action and Potential Penalties

The CFTC is pursuing significant penalties against Pinillo, including bans on trading and registration, monetary restitution for victims, disgorgement of ill-gotten gains, and additional financial remedies. This case underscores the growing concerns about fraud in the crypto sector, particularly as regulators aim to tighten oversight under the incoming administration.

Key Takeaways:

• Ponzi Scheme Mechanics: Pinillo used new investor funds to pay fake profits to earlier participants.

• Exploitation of Trust: The accused leveraged his position as a pastor to attract unsuspecting investors.

• CFTC’s Push for Justice: The agency seeks hefty penalties and restitution for victims.

This case highlights the importance of due diligence and skepticism toward “guaranteed” returns in the crypto space.