The CFTC (U.S. derivatives regulator) won a default judgment on September 30 against Fundsz promoters Brian Early and Alisha Ann Kingrey, who were ordered to pay more than $31 million over a digital assets and precious metals fraud. The U.S. District Court for the Middle District of Florida found that the pair, who served as Fundsz board members and social media moderators, misrepresented expected profits, trading performance and the risk of loss while directing participants into the unincorporated scheme. They claimed investor money would be managed through a proprietary algorithm and could be withdrawn within 180 days with interest. The court ordered $15,732,455 in restitution and a separate $15,732,455 civil monetary penalty, while permanently barring both defendants from trading and registering with the CFTC. The judgment follows consent orders involving Rachel Larralde, representing the estate of founder Rene Larralde, and Juan Pablo Valcarce. The founder was found to have misappropriated investor funds, and his estate must transfer a residence purchased with those funds and more than $2.7 million in additional assets to a court-appointed receiver. The case, filed by the CFTC in 2023, closes the Fundsz matter amid broader enforcement against investment fraud, including the agency's action over a $950 million Cash FX Ponzi scheme and the SEC's case against Cryptoaiml and TSAI over alleged fake AI trading bots. The CFTC cautioned investors about schemes promising algorithmic trading profits and outsized returns.