CFTC Secures $31.48 Million Judgment After Two Operators Made False Crypto Investment Claims

A promised path from $2,500 to $1 million has ended with two Fundsz board members ordered to pay more than $31 million after a US court found they misrepresented investment returns, risks and trading activity.

The Commodity Futures Trading Commission (CFTC) said the defendants promoted Fundsz as a cryptocurrency and precious metals investment operation, claiming it could generate returns of more than 3% every week through a proprietary trading algorithm.

Fundsz Promised Weekly Returns Of More Than 3%

The case centres on Brian Early and Alisha Ann Kingrey, who served as Fundsz board members and social media moderators.

The US District Court for the Middle District of Florida entered a default judgment against both defendants after finding that they made material misrepresentations and omissions about Fundsz’s expected profits, risk of loss and historical trading performance.

The CFTC said Fundsz had claimed that a one-time $2,500 contribution could grow to $1 million within 48 months without any additional deposits.

The promoters also claimed that participants’ money would be traded in cryptocurrencies and precious metals using a proprietary algorithm, with funds available for withdrawal with interest after 180 days.

Fundsz was also promoted under the tagline “Fundsz For Your Cause”, with claims that contributions would support clean water, humanitarian, health, education and disaster relief efforts.

According to the CFTC’s 2023 complaint, the operation claimed to have more than 14,000 participants and said it had delivered accurate and timely payments for seven years.

Court Found Fundsz Returns Were Not Based On Real Trading

The regulator alleged that customer funds were not traded as promised and that the investment gains shown to participants were fictional.

The court later found that Early and Kingrey had misrepresented the expected profits, investment risks and previous trading performance.

The court also found that they falsely represented that participants’ money would be traded through the proprietary algorithm and could be withdrawn with interest after 180 days.

After learning about the CFTC investigation, Early and Kingrey began reducing their profitability claims and worked to remove Fundsz’s presence from social media, according to the court findings.

The CFTC first filed its case on 31 July 2023 against Fundsz, founder Rene Larralde, Juan Pablo Valcarce, Early and Kingrey.

On 2 August 2023, Judge Wendy Berger issued an ex parte statutory restraining order freezing the defendants’ assets, preserving records and appointing a temporary receiver.

The CFTC announced its complaint publicly on 11 August 2023, accusing the defendants of fraudulently soliciting customers to invest in cryptocurrency and precious metals.

According to TRM’s blockchain intelligence, Fundsz received funds from a range of entities, including major cryptocurrency exchanges, a high-risk exchange and a payment processor. (Source: TRM Labs)

Early And Kingrey Face More Than $31 Million In Payments

Under the default judgment, Early and Kingrey were ordered to pay $15,732,455 in restitution and a further $15,752,455 civil monetary penalty.

Together, the two amounts total $31,484,910.

The court also permanently prohibited the pair from further violations of the Commodity Exchange Act and CFTC regulations and imposed permanent registration and trading bans.

The CFTC cautioned that even when courts order repayment, victims may not recover all of their losses if the defendants do not have enough money or assets.

What Happened To The Other Fundsz Defendants?

The judgment against Early and Kingrey followed consent orders involving two other defendants, Rachel Larralde, acting as personal representative of the estate of Rene Larralde, and Juan Pablo Valcarce.

The court found that Rene Larralde, who founded and controlled Fundsz, and Valcarce had deceived participants into investing in the operation.

The court also found that Larralde had used investor funds for personal purposes.

As part of the consent order, Larralde’s estate was required to give up ownership rights in a personal residence purchased with investor funds, along with more than $2.7 million in other assets, to a court-appointed receiver.

Valcarce was also permanently barred from further violations of the Commodity Exchange Act and CFTC regulations and received permanent registration and trading bans.

The default judgment and consent orders resolve the remaining claims in the CFTC’s action.

Fundsz Fits Into A Wider Crypto Investment Fraud Problem

The case is part of a much larger wave of investment and cryptocurrency fraud affecting consumers in the US and elsewhere.

The FBI recorded 181,565 cryptocurrency-related reports in 2025, with reported losses exceeding $11 billion.

Investment fraud accounted for about 49% of total fraud losses, while people aged over 60 reported $7.7 billion in losses, up 37% from 2024.

The Federal Trade Commission separately reported more than $7.9 billion in scam losses during 2025, with the median amount lost per scam exceeding $10,000.

Chainalysis estimated that at least $14 billion was lost to cryptocurrency scams and fraud in 2025, with the total potentially exceeding $17 billion when unidentified illicit addresses are included.

The firm also reported that the average amount lost per crypto scam increased 253% to $2,764.

Regulators Continue To Target High Return Crypto Schemes

The Fundsz case also comes alongside several recent enforcement actions involving alleged cryptocurrency and investment fraud.

The US Securities and Exchange Commission filed two civil cases on 29 September 2026 against four entities accused of cryptocurrency and artificial-intelligence investment scams that allegedly misappropriated more than $15 million from retail investors.

The SEC alleged that Cryptoaiml Ltd. and Cryptoaiml Capital Foundation took more than $12.5 million from more than 300 investors, while TSAI Pro Ltd. and TSAI Capital Foundation allegedly misappropriated at least $2.8 million from about 1,715 investors.

In the UK, the Financial Conduct Authority secured confiscation orders worth £851,402.27, or roughly $1.15 million, against two men convicted of operating a £1.5 million crypto investment fraud.

Raymondip Bedi was ordered to pay £603,404.28, while Patrick Mavanga was ordered to pay £247,997.99.

The FCA said the recovered funds would be returned to affected investors.

The CFTC’s enforcement director Ian McGinley said when the Fundsz complaint was announced in August 2023:

“The CFTC continues to root out individuals who defraud customers in the cryptocurrency and precious metals markets. Though the products fraudsters purport to trade and their methods of attracting victims, in this case through social media, may have changed, the old adage ‘if something sounds too good to be true, it probably is’ remains as valid as ever.”