On January 6, 2026, the U.S. Commodity Futures Trading Commission (CFTC) successfully dismissed Fundsz as a defendant in its commodities fraud lawsuit, following a second motion filed on January 5, per court filings. The CFTC argued that Fundsz, an unincorporated association operating a defunct website platform, had not appeared in court or incurred defense costs, with no objections from other defendants or the receiver. This dismissal streamlines the case, focusing on individual defendants amid ongoing proceedings.
Fundsz, launched in 2020 by Rene Larralde, operated as an MLM crypto Ponzi scheme, promising high returns through fraudulent investments, per the CFTC’s July 2023 complaint. The lawsuit named Larralde, Alisha Kingrey, Brian Early, and Juan Pablo Valcarce, alleging violations of the Commodity Exchange Act (7 U.S.C. § 9) for deceptive practices, per. Larralde died in late 2023, with his daughter Rachel representing his estate, which settled in 2024 alongside Valcarce, per. Proceedings against Kingrey and Early continue, with potential penalties under 18 U.S.C. § 981 for asset forfeiture,Coinlaw.io.
The dismissal of Fundsz as an entity reflects its defunct status, shifting focus to individual accountability, per. Victim losses remain unquantified publicly, but parallel MLM frauds like Forsage ($340M) and GSPartners ($1B+) highlight systemic risks, per DOJ filings. The receiver’s non-objection suggests asset recovery efforts prioritize living defendants, per. X posts from @CryptoLawyerz note this as a procedural win for the CFTC, potentially accelerating resolutions.
The case underscores CFTC’s aggressive stance on Ponzi schemes, with Kingrey and Early facing civil penalties and restitution. Investors should verify platforms via cftc.gov and avoid MLM crypto promises. Bitcoin (BTC) ($113,234) and Ethereum (ETH) ($4,070) remain stable, per CoinMarketCap, but fraud cases like Fundsz erode trust. Diversify into USDC with stop-losses below BTC’s $112,000, per TradingView. Follow @TheBlock__ on X for updates. Resolution against remaining defendants could set precedents for crypto MLM enforcement in 2026.
