The U.S. Department of Justice announced fraud charges against David Saffron, the owner of the Circle Society cryptocurrency investment platform (with no relation to Circle). Saffron allegedly lied to investors, saying he operated a cryptocurrency trading bot that would generate 500–600% returns on investment. He also reportedly held meetings at luxury homes in the Hollywood Hills and traveled with armed security "in order to create the false appearance of wealth and success".
The scheme ultimately drew in about $12 million from investors, beginning in late 2017. Saffron was charged with one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit commodities fraud, and one count of obstruction of justice. If convicted of all charges, he faces up to 115 years in prison.
Previously, in April 2021, the a court ordered Circle Society and Saffron to pay $32 million in relation to the scheme after a default judgment in a lawsuit from the CFTC, who described the whole thing as a Ponzi scheme.