Share this article
CFTC Takes Action Against Crypto Options 'Ponzi Scheme'
Purported crypto and forex investment firm Circle Society is accused by the CFTC of operating like a Ponzi scheme.
Updated Sep 13, 2021, 11:35 a.m. Published Oct 17, 2019, 10:00 a.m.
A purported cryptocurrency and foreign exchange investment firm is in hot water with the U.S. Commodity Futures Trading Commission (CFTC) and stands accused of operating like a Ponzi scheme.
In a press release on Wednesday, relating to a complaint filed Sept. 30., the CFTC said it's charging Nevada-based Circle Society and its operator David Gilbert Saffron with fraudulently soliciting and misappropriating investor funds, as well as registration violations.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Through his firm, Saffron offered binary options on forex and cryptocurrency pairs and is alleged to have fleeced investors for $11 million in dollars and bitcoin since 2017.
The complaint says Saffron fraudulently solicited funds from at least 14 individuals to participate in an investment pool operated by Circle Society, making false claims about his trading expertise and "guaranteeing" gains of up to 300 percent.
Instead of using participants’ investments to actually trade in binary options contracts, Saffron used the funds – diverted to his own crypto wallet – to pay other participants, "in the manner of a Ponzi scheme." The misappropriation of the funds was concealed with a tissue of lies, allegedly.
CFTC Chairman Heath Tarbert said:
“Digital assets and other 21st century commodities hold great promise for our economy. Fraudulent schemes, like that alleged in this case, not only cheat innocent people out of their hard-earned money, but they threaten to undermine the responsible development of these new and innovative markets.”
A court has ordered the freezing of any assets held by Saffron and Circle Society, as well as the preservation of financial records. A hearing over the case will take place Oct. 29.
The CFTC is seeking to retrieve the funds contributed to the scheme, alongside penalties and permanent registration and trading bans. The agency hopes to return invested funds to victims, though it said it cannot guarantee the full value can be obtained from Saffron and his firm.
CFTC image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
XRP Faces Downside Risk as Social Sentiment Turns Wildly Negative
The turn in crowd mood comes after a two-month slide of roughly 31%, leaving the token vulnerable to further downside if risk appetite weakens across majors.
What to know:
- XRP's price approached the $2 mark as social sentiment around the token turned sharply negative, according to Santiment data.
- The token has experienced a 31% decline over two months, making it vulnerable to further losses if market risk appetite weakens.
- Santiment's sentiment model indicates XRP is in a 'fear zone,' where negative commentary significantly outweighs positive talk, potentially influencing market positioning.
Top Stories
