Key Takeaways
- • $31 million default judgment issued by U.S. District Court for the Middle District of Florida on September 30, 2026, against Fundsz promoters Brian Early and Alisha Ann Kingrey, comprising $15.73 million in restitution and $15.75 million in civil penalties.
- • Fraudulent scheme mechanics: Early and Kingrey misrepresented that client funds would be traded through a proprietary algorithm with guaranteed 180-day withdrawal windows and interest returns; the court found client funds were never actually traded and returns were fabricated.
- • Permanent trading bans imposed against both defendants, with additional consent orders requiring two other defendants to surrender a residence and over $2.7 million in assets tied to the founder's estate.
- • Crypto fraud context: The judgment reflects broader regulatory enforcement, with FBI, FTC, and Chainalysis data indicating crypto-related fraud losses exceeded $11 billion in 2025, positioning this case as part of intensified CFTC action against digital asset schemes.
Summary
The Commodity Futures Trading Commission secured a $31 million default judgment against Fundsz promoters Brian Early and Alisha Ann Kingrey on September 30, 2026, marking a significant enforcement victory in an ongoing crackdown on cryptocurrency and precious metals fraud. The U.S. District Court for the Middle District of Florida ordered the defendants to pay $15.73 million in restitution to defrauded investors and $15.75 million in civil penalties, alongside permanent bans from trading activities.
Early and Kingrey, who served as board members and social media moderators for Fundsz, orchestrated a scheme that misled investors regarding expected profits, risk exposure, and the platform's historical trading performance. The defendants falsely promised participants that their capital would be deployed through a proprietary trading algorithm, with funds remaining accessible within 180 days and generating interest-bearing returns. The court's findings established that client funds were never actually traded as represented and that all returns presented to investors were wholly fabricated—a pattern consistent with classic Ponzi-scheme mechanics.
Beyond the primary judgment, consent orders resolved claims against two additional defendants tied to the scheme's founding. These orders required the defendants to surrender a residential property and liquidate over $2.7 million in assets, with proceeds directed toward victim restitution. The comprehensive asset seizure underscores the court's determination to disgorge ill-gotten gains and restore capital to affected participants.
This enforcement action reflects the CFTC's sustained assault on unregistered digital asset and commodities fraud. The judgment arrives amid a documented surge in crypto-related fraud losses—FBI, FTC, and Chainalysis data collectively reported losses exceeding $11 billion in 2025—illustrating the scale of fraud that regulators are attempting to contain. The three-year enforcement battle culminating in this September 2026 ruling demonstrates both the complexity of prosecuting multi-defendant schemes and the regulatory commitment to imposing substantial financial consequences and trading restrictions on operators of fraudulent digital asset platforms.
Early and Kingrey, who served as board members and social media moderators for Fundsz, orchestrated a scheme that misled investors regarding expected profits, risk exposure, and the platform's historical trading performance. The defendants falsely promised participants that their capital would be deployed through a proprietary trading algorithm, with funds remaining accessible within 180 days and generating interest-bearing returns. The court's findings established that client funds were never actually traded as represented and that all returns presented to investors were wholly fabricated—a pattern consistent with classic Ponzi-scheme mechanics.
Beyond the primary judgment, consent orders resolved claims against two additional defendants tied to the scheme's founding. These orders required the defendants to surrender a residential property and liquidate over $2.7 million in assets, with proceeds directed toward victim restitution. The comprehensive asset seizure underscores the court's determination to disgorge ill-gotten gains and restore capital to affected participants.
This enforcement action reflects the CFTC's sustained assault on unregistered digital asset and commodities fraud. The judgment arrives amid a documented surge in crypto-related fraud losses—FBI, FTC, and Chainalysis data collectively reported losses exceeding $11 billion in 2025—illustrating the scale of fraud that regulators are attempting to contain. The three-year enforcement battle culminating in this September 2026 ruling demonstrates both the complexity of prosecuting multi-defendant schemes and the regulatory commitment to imposing substantial financial consequences and trading restrictions on operators of fraudulent digital asset platforms.
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