The US Commodity Futures Trading Commission (CFTC) has issued a consent order against a New Yorker, marking one of its first crypto-related enforcement actions under the leadership of acting Chair Caroline Pham. This signals a shift in the agency’s enforcement priorities.
On February 10, the CFTC reported that Rashawn Russell, residing in New York, had been charged with engaging in a fraudulent digital assets trading scheme from 2020 to 2022. He allegedly lured investors to contribute cryptocurrency to a fraudulent fund. As per the complaint, Russell is accused of diverting approximately $1.5 million via the scheme, leading to his guilty plea to wire fraud in the US District Court for the Eastern District of New York.
“Russell assured investors of no losses, and in some cases, offered a minimum return of twenty-five percent,” the CFTC complaint dated January 16 revealed. “However, Russell knowingly and/or recklessly provided false or misleading information to attract and retain investors.”
This enforcement case aligns with the agency’s new direction since acting Chair Pham announced on February 4 that the CFTC would be reorganizing its Division of Enforcement’s priorities to target fraud. The commission intends to separate enforcement case responsibilities into two task forces: one on retail fraud and another on “complex fraud and manipulation.”
The CFTC, under the interim chairmanship of Pham, who was elected on January 20 in the wake of US President Donald Trump’s inauguration, is expected to witness a change of guard soon. Former Chair Rostin Behnam left the commission one member short when he stepped down on January 20, remaining at the CFTC until February 7.
Under Behnam’s tenure in the 2024 fiscal year, the CFTC logged over $17 billion in monetary relief, primarily from actions against FTX, a crypto exchange. Pham’s recent announcement indicates a shift in the CFTC’s focus from regulating by enforcement towards crypto companies dealing with assets considered commodities.
Meanwhile, the US Securities and Exchange Commission (SEC), another substantial financial regulator of digital assets in the country, revealed in January that it would establish a crypto task force to create a regulatory framework. Following Gary Gensler’s departure, President Trump designated SEC Commissioner Mark Uyeda as acting chair until the US Senate can review the nomination of former commissioner Paul Atkins.
