Tennessee couple hit with a $6.8 million penalty for “God Blessing Through Code” fraud

A Tennessee couple who misused real estate connections with millions of investors through fake crypto trading schemes have been ordered to pay more than $6.8 million in reparations and penalties.

Commodity Futures Trading Committee announcement On Thursday, the U.S. District Court for the Central District of Tennessee issued a consent order against Michael and Amanda Griffiths, Clarksville real estate agents who ran the fraudulent “God’s Blessings” merchandise pool from 2021 to 2023.

The couple was like that I was charged first By CFTC in July 2023.

Regulators said the couple used their real estate business connections to persuade 145 investors to give $6.5 million, and they promised that the money would generate profits. Crypto Futures It was a legitimate apex platform under the supervision of the mystical “Coach Wendy” that traded what they had claimed.

Under court orders, the couple must pay the victim more than $5.5 million and face an additional $1.35 million “civil currency penalty.”

Griffiths raised money on a fake platform modeled after an overseas exchange, but the true identity of “Coach Wendy” is unknown to investigators.

After reaching the fake exchange, more than $4 million was collected offshore, but the rest covered the couple’s personal debt and expenses. According to the CFTC, only about $855,000 have been repaid to participants in the Ponzi-style payments.

The ruling also imposes a lifetime ban that prevents them from commodity trading and CFTC registration, while banning future violations of the federal Commodity Act.

This case is part of a nasty pattern of scammers, like the Denver pastor and his wife, who misuse trust within community groups. I was ordered to repay $3.39 million. After raising millions for worthless church tokens. Another example is a man from Long Island. $228 million CFTC rulinga 9 years in prison For the Ponzi scheme operator who preyed on his Haitian church community.

In the most recent cases, investors may be ignoring warning signs that could indicate the fraud in question.

“The exchange websites with no details about registered companies are a clear red flag that users could notice,” said Karan Pujara, founder of fraud defense platform Scambuzzer. Decryption.

Pujara said scammers often chase “quick money” and aim to leave before they get caught, warning that the code will cause them to move “quickly across the border” if funds are lost, making recovery difficult.

Even regulated platforms can fail investors, he noted, as seen in FTX, which hold licenses but still misuse customer funds.

Puhala advised investors to spread risk using multiple exchanges and hardware wallets, saying, “Diversified people kept their losses managed, while those who concentrated all their funds in one place faced a huge loss.”