WASHINGTON, D.C. — The Commodity Futures Trading Commission announced today the U.S. District Court for the Western District of Washington has resolved all claims the CFTC filed in its September 2024 complaint against Qian Bai and Chao Li, both residents of the People’s Republic of China, their co-conspirator Lan Bai, a resident of Oklahoma, as well as Aipu Limited and Fidefx Investments Ltd., which were both United Kingdom private limited companies. [See CFTC Press Release No. 8987-24].

The court found that the defendants, while acting as a common enterprise, operated fraudulent websites that purported to allow customers to trade for over 18 months and fraudulently solicited and misappropriated at least $3,630,849 from at least 34 customers in connection with the sale of agreements, contracts or transactions in leveraged or margined retail commodity transactions, off-exchange retail foreign currency contracts, and commodity futures contracts.

On July 14, the court entered an order against Lan Bai requiring her to pay, jointly and severally, a $699,534 civil monetary penalty and restitution of $233,178 to defrauded victims for her role in the fraudulent scheme. 

On May 22, the court entered a default judgment against Qian Bai, Li, Aipu Limited, and Fidefx, which requires them to pay, jointly and severally, a $13,863,170 civil monetary penalty and restitution of $4,621,056. The default judgment also imposes permanent injunctions against them and bans them from trading in any CFTC-regulated markets, entering into any transactions involving commodity interests, and registering with the CFTC. 

Previously, the CFTC and Lan Bai entered into a consent order which imposes a permanent injunction against her and bans her from trading in any CFTC-regulated markets, entering into any transactions involving commodity interests, and registering with the CFTC.

The CFTC cautions that orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.

Division of Enforcement staff responsible for this case are Karen Kenmotsu, George H. Malas, Michael Amakor, Chrystal Gonnella, Timothy J. Mulreany, and Paul G. Hayeck. 

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CFTC’s Fraud Advisory

The CFTC has issued several customer protection fraud advisories, including Avoid Forex, Precious Metals, and Digital Asset Romance Scams, which warns users of online dating and social media platforms about an increase in scams that lure victims into sending their money to fraudulent websites that claim to trade foreign currency exchange (forex) contracts, precious metals contracts, and/or digital assets. 

The CFTC also strongly urges the public to verify a company’s registration with the CFTC at NFA BASIC before committing funds. If unregistered, a customer should be wary of providing funds to that entity.

Report suspicious activities or information, such as possible violations of commodity trading laws, to the Division of Enforcement via a toll-free hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online or contact the Whistleblower Office. Whistleblowers are eligible to receive between 10 and 30 percent of the monetary sanctions collected, paid from the Customer Protection Fund financed through monetary sanctions paid to the CFTC by violators of the CEA.