The Commodity Futures Trading Commission (CFTC) has filed charges against two firms, Aipu Limited and Fidefx Investments Limited, along with individuals Qian Bai, Lan Bai, and Chao Li, accusing them of orchestrating a $3.6 million investment fraud. The civil enforcement action was filed in the U.S. District Court for the Western District of Washington.
According to the CFTC, the defendants fraudulently solicited and misappropriated funds from at least 32 customers, primarily Asian Americans, starting in February 2023. Investors were led to believe that they were funding trading accounts with Aipu or Fidefx through their respective websites or by trading commodity interests via solicitors acting on behalf of the defendants.
These solicitors claimed to have insider knowledge, offering investors 10% to 30% profits per trade in leveraged retail commodity transactions, forex, and commodity futures. However, the CFTC alleges that the accounts were falsified, and no real trading took place. Instead, funds were moved to offshore entities controlled by individuals outside the U.S.
The CFTC is seeking restitution for defrauded customers, the return of ill-gotten gains, civil penalties, and permanent trading bans against the defendants. The allegations have yet to be proven in court.
