Court orders Fundsz promoters to pay over $31 million in CFTC digital assets and precious metals fraud case

A US federal court has ordered two promoters of Fundsz, an unincorporated scheme that took money for digital assets and precious metals trading, to pay more than $31 million, the Commodity Futures Trading Commission said on 30 September 2026.

The US District Court for the Middle District of Florida entered a default judgment against Brian Early and Alisha Ann Kingrey. The court found that, acting as Fundsz board members and social media moderators, they misrepresented the scheme’s expected profits, its risk of loss and its trading history.

What the court found

According to the court’s findings, the pair told participants their money would be traded by a proprietary algorithm and could be withdrawn after 180 days with interest. That was false. The court also found that once they learned of the CFTC’s investigation, they began walking back their profit claims and worked to remove Fundsz from social media.

Early and Kingrey must pay $15,732,455 in restitution and a $15,752,455 civil monetary penalty. They are permanently barred from further violations of the Commodity Exchange Act and CFTC rules, and from registering with the CFTC or trading.

Consent orders against two others

Before the default judgment, the court entered consent orders against two more defendants. It found that Fundsz’s founder and controlling person, Rene Larralde, and Juan Pablo Valcarce had deceived participants, and that Larralde had misappropriated funds for personal use.

Rachel Larralde, as personal representative of Rene Larralde’s estate, must hand a home bought with investor money, plus more than $2.7 million in other assets, to the court-appointed receiver. Valcarce is permanently enjoined and banned from registering and trading.

What it means for traders

The scheme’s pitch combined three familiar warning signs: an automated “proprietary algorithm”, a promised payout date with interest, and promotion through social media moderators. Early, Kingrey and Valcarce are now under permanent trading and registration bans. Our guide on how to check a broker licence explains how to look up a firm before sending money.

What happens next

The CFTC says the default judgment and the two consent orders resolve all remaining claims in its case, which it first announced in Release No. 8766-23.