A pastor in Washington state has been indicted on 26 counts of fraud, accused of orchestrating a $25 million cryptocurrency scheme that defrauded over 1,500 investors.
Francier Obando Pinillo, 51, allegedly used his position as a pastor to lure congregants into the fraudulent venture, Solano Fi. He claims the idea came to him “in a dream,” according to the US Department of Justice.
The indictment, announced on 9 January 202, outlines how Pinillo promoted Solano Fi as a safe, guaranteed investment. Prosecutors allege he persuaded members of his Spanish-language church in Pasco, Washington, to invest, leveraging his pastoral role to gain their trust.
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Pinillo Used Social Media Platforms To Expand Reach
Pinillo also reportedly expanded his reach through social media platforms. This includes a Facebook page and the Telegram group “Multimillionarios SolanoFi,” which had over 1,500 members.
Solano Fi, active from November 2021 to October 2023, purportedly traded Bitcoin, Ether, and other cryptocurrencies while staking tokens to deliver “risk-free” monthly returns of up to 35%.
Prosecutors claim Pinillo showed investors fraudulent account balances on Solano Fi’s website to give the illusion of profitability. However, when investors sought to withdraw their funds, they were reportedly met with excuses, such as waiting for market improvements or finding new investors to “buy out” their accounts.
Pastor turned crypto scammer charged with 26 counts of fraud:
Allegedly ran a $28M scheme, promising investors big returns while misusing funds for luxury living.
His “Faith Token”?
More like false hope. Justice incoming. pic.twitter.com/cCA7KXu9Xm
— ₿itcody (@bitcodyy) January 13, 2025
Further allegations suggest the scheme incentivized participants to recruit others with promises of additional returns, a hallmark of pyramid schemes. Meanwhile, Pinillo and his associates are accused of misappropriating investor funds for personal gain.
In a parallel case, the Commodity Futures Trading Commission filed a civil lawsuit in December, alleging Pinillo embezzled $6 million from the scheme. The Justice Department stated that Pinillo could face up to 20 years in prison if convicted.
“Fraudulent investment schemes are not new, but cryptocurrency scams are a new way fraudsters take money from hardworking, honest people,” said U.S. Attorney Waldref.
“Cryptocurrency fraudsters often quickly route funds to international accounts, which presents new challenges for law enforcement attempting to recover lost funds.”
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Canadian “Crypto King” Arrested for Fraud
The recent warning from the SEC comes as regulatory agencies around the world are trying to tackle crypto-related scams.
In May last year, two Canadian men, Aiden Pleterski and Colin Murphy, were arrested and charged with fraud. This was in connection with an alleged crypto and foreign exchange investment scheme that swindled investors out of $40 million CAD (approximately $30 million).
In another similar incident, Chinese authorities knocked down an illegal operation involving underground banks and virtual currencies. It exposed a staggering $300 million crypto fraud. The investigation led to the arrest of six individuals suspected of engaging in criminal activities related to money laundering between China and South Korea.
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