Tennessee Couple Ordered to Repay Nearly $7 Million in Crypto Fraud Case
- Michael and Amanda Griffis defrauded 145 investors of $6.5M through a sham crypto pool called “Blessings Thru Crypto.”
- Over $4M was sent to an illegitimate overseas exchange, while remaining funds covered debts and personal purchases.
- The court ordered $6.8M in restitution and penalties, alongside a trading and registration ban imposed by the CFTC.
A Tennessee couple has been ordered to repay almost $7 million after defrauding more than 100 investors through a fraudulent crypto trading pool. The Commodity Futures Trading Commission (CFTC) confirmed the ruling in a September 25 press release, noting that the pair collected millions under false pretenses and misused large portions of the money.
Fraudulent Pool Attracted 145 Investors
Michael and Amanda Griffis, both realtors, convinced 145 participants to contribute a total of $6.5 million into what they described as a pooled investment vehicle called “Blessings Thru Crypto.” They told contributors the funds would be used to trade commodity futures on the Apex Trading Platform, supposedly under the guidance of an individual known only as “Coach Wendy.”
Court documents revealed that the platform was a copy of an overseas exchange and provided no legitimate trading access. Investigators also stated that the identity and role of “Coach Wendy” remain uncertain. This raised questions about the authenticity of the trading claims made by the couple when attracting investors.
Crypto Funds Sent Abroad and Misused
The CFTC reported that more than $4 million from the pool was transferred to an overseas exchange. From there, the funds moved through various accounts and offshore trading platforms, making recovery efforts more difficult.
The remaining balance of the pool was spent on personal expenses rather than investment activities. According to the filing, the couple used the money to settle personal debts and purchase consumer goods, contradicting their stated investment strategy.
Restitution and Monetary Penalties
The U.S. District Court for the Middle District of Tennessee approved a consent order against the couple. The order requires them to pay $5,528,121 in restitution to affected participants. In addition, they must pay $1,355,232 as a civil monetary penalty.
Together, these obligations amount to more than $6.8 million in relief. The order also bans the Griffises from trading commodities or registering with the CFTC. They are further prohibited from future violations of the Commodity Exchange Act and related CFTC regulations.
Charles Marvine, Acting Chief of the Division of Enforcement’s Retail Fraud and General Enforcement Task Force, emphasized the importance of caution in investment decisions. He stated that when promised opportunities appear unusually favorable, they often come with significant risks for everyone involved.
