Pastor Defrauded 1500 People in a $6M Ponzi Scheme

The U.S. Commodity Futures Trading Commission (CFTC) has filed a complaint against Francier Obando Pinillo, a pastor in Washington state, alleging his involvement in a $6 million cryptocurrency Ponzi scheme. The case accuses Pinillo of defrauding 1,500 individuals, many of whom were members of his Spanish-speaking congregation in Pasco, Washington.

The CFTCs complaint outlines a multilevel marketing scheme promoted by Pinillo from November 2021 to December 2023. Claiming to be the CEO of companies such as Solanofi and Solano Partners, Pinillo presented a so-called “Solano ecosystem.” He reportedly promised high returns through “high-performance” cryptocurrency trading and staking services.

Pinillo assured clients that his platform could deliver monthly profits of up to 34.9%. He also promoted a staking service branded as “Solanofi 2.0,” which allegedly guaranteed returns on digital assets, including Bitcoin, Ether, Solana, USDT, and Dogecoin. To further entice participants, the scheme reportedly offered a 15% referral bonus and provided access to an online dashboard that displayed fabricated account statements.

The CFTC has stated that no legitimate trading or staking services existed under Pinillos operations. Instead, all customer funds were allegedly misappropriated. The regulator noted that Pinillo primarily targeted unsophisticated investors, many of whom had limited knowledge of digital asset transactions. Solicitation efforts were conducted almost exclusively in Spanish, leveraging his position as a pastor to build trust within his community.

The CFTC is seeking restitution for victims, the forfeiture of funds, a trading ban, and a permanent injunction against Pinillo.

The agencys efforts to address crypto-related fraud have intensified in recent years. In 2024, the CFTC reported record recoveries of $17 billion, with a significant portion stemming from its crackdown on the FTX crypto exchange. FTX, which collapsed in November 2022, was involved in one of the largest financial scandals in crypto history.

The FTX case alone contributed $12.7 billion in restitution and disgorgement, the largest recovery in the CFTCs history. The settlement targeted FTX, its affiliate Alameda Research, and several executives, including founder Sam Bankman-Fried. It included $8.7 billion in restitution and $4 billion in disgorgement.