The CFTC has filed a civil enforcement action against former Deutsche Bank investment banker Rashawn Russell for digital asset trading fund fraud and misappropriation of investor assets.

In the case, the CFTC defines Bitcoin, Ethereum, and USD Coin (USDC) as commodities, in contrast to the SEC's claim that all cryptocurrencies except Bitcoin are securities.

The CFTC seeks restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and other CFTC regulations. Russell promised at least a 25% return on investment (RoI) and falsely promised to pay investors in USDC stablecoin, while misappropriating $1 million in investor assets to pay personal expenses, gambling companies, and Ponzi-like payments to current investors.