UNITED STATES OF AMERICA 

Before the 

COMMODITY FUTURES TRADING COMMISSION 

In the Matter of: 

CODY MALOSI WILSON, 

Respondent.

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CFTC Docket No. 21-13

ORDER INSTITUTING PROCEEDINGS PURSUANT TO 

SECTION 6(c) AND (d) OF THE COMMODITY EXCHANGE ACT, MAKING 

FINDINGS, AND IMPOSING REMEDIAL SANCTIONS 

I. INTRODUCTION

The Commodity Futures Trading Commission (“Commission”) has reason to believe that 

from approximately August 2015 to October 2018 (“Relevant Period”), Respondent Cody Malosi 

Wilson (“Wilson”) violated Section 4m(1) of the Commodity Exchange Act (“Act”), 7 U.S.C. 

§ 6m(1) (2018), and Commission Regulation (“Regulation”) 4.20 (a)-(c), 17 C.F.R. § 4.20(a)-(c)

(2021). Therefore, the Commission deems it appropriate and in the public interest that public

administrative proceedings be, and hereby are, instituted to determine whether Wilson engaged

in the violations set forth herein and to determine whether any order should be issued imposing

remedial sanctions.

In anticipation of the institution of an administrative proceeding, Wilson has submitted an 

Offer of Settlement (“Offer”), which the Commission has determined to accept. Without 

admitting or denying any of the findings or conclusions herein, Wilson consents to the entry of 

this Order Instituting Proceedings Pursuant to Section 6(c) and (d) of the Commodity Exchange 

Act, Making Findings, and Imposing Remedial Sanctions (“Order”), and acknowledges service 

of this Order.1

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 Wilson consents to the use of the findings of fact and conclusions of law in this Order in this proceeding and in any 

other proceeding brought by the Commission or to which the Commission is a party or claimant, and agrees that 

they shall be taken as true and correct and be given preclusive effect therein, without further proof. Wilson does not 

consent, however, to the use of this Order, or the findings or conclusions herein, as the sole basis for any other 

proceeding brought by the Commission or to which the Commission is a party or claimant, other than: a proceeding 

in bankruptcy or receivership; or a proceeding to enforce the terms of this Order. Wilson does not consent to the use 

of the Offer or this Order, or the findings or conclusions in this Order, by any other party in any other proceeding.
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II. FINDINGS 

The Commission finds the following: 

A. SUMMARY 

During the Relevant Period, Wilson operated multiple commodity pools. In connection 

with those pools, Wilson solicited or accepted funds from at least 15 individuals. Wilson used 

pool participants’ funds to trade off-exchange binary options through a foreign binary options 

trading platform. Wilson has never been registered with the Commission and was not exempt 

from the requirement to register as a commodity pool operator (“CPO”). By and through these 

actions, Wilson violated Section 4m(1) of the Act, 7 U.S.C. § 6m(1) (2018). 

Wilson also failed to operate the commodity pools as legal entities separate from that of 

the operator, received pool funds in his own name, and engaged in prohibited commingling of 

pool funds. By and through these actions, Wilson violated Regulation 4.20 (a)-(c), 17 C.F.R. 

§ 4.20(a)-(c) (2021). 

B. RESPONDENT 

Cody Malosi Wilson is an individual who resides in Idaho Falls, Idaho. 

C. FACTS 

During the Relevant Period, Wilson operated commodity pools that he ran under various 

names, including Young Millionaires, Simple Wealth, and Simple Wallet. Wilson did not 

operate these pools continuously, typically closing one before starting a new one, but during the 

periods when the pools were active, each pool had approximately 15 to 30 participants. Wilson 

used foreign trading platforms to trade on behalf of the pools and their participants. He primarily 

traded binary options on foreign exchange currency pairs, although on occasion he engaged in 

retail foreign exchange transactions. 

Wilson used the means or instrumentalities of interstate commerce in connection with his 

business as a CPO. Wilson solicited prospective pool participants and ran the commodity pools 

through social media accounts and group chats that he created and controlled in the name of 

Young Millionaires, Simple Wealth, or Simple Wallet. Wilson also collected funds from pool 

participants using payment processors, mobile payment services, social media, and checks; 

transferred money to and from foreign trading platforms using credit cards, electronic money 

transfers, and payment processors; and communicated with pool participants using social media, 

phone calls, and text messages. 

Wilson instructed pool participants to transfer funds for pool investments to accounts in 

his own name, and pool participants actually did so. These accounts included personal bank 

accounts in Wilson’s name, accounts Wilson held at payment processing services and mobile 

payment services, and cryptocurrency wallets controlled by Wilson. To the extent that Wilson 

transferred those funds to accounts at foreign trading platforms, those accounts were held in 

Wilson’s own name. 
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III. LEGAL DISCUSSION 

A. Wilson Violated Section 4m(1) of the Act 

Section 4m(l) of the Act, 7 U.S.C. § 6m(1) (2018), makes it unlawful for any CPO to use 

the mails or any instrumentality of interstate commerce in connection with the CPO’s business, 

without being registered with the Commission, subject to certain exceptions and exemptions not 

relevant here. Section 1a(11) of the Act, 7 U.S.C. § 1a(11) (2018), defines a CPO, in relevant 

part, as any person “engaged in a business that is of the nature of a commodity pool, investment 

trust, syndicate, or similar form of enterprise, and who, in connection therewith, solicits, accepts, 

or receives from others, funds, securities, or property . . . for the purpose of trading in 

commodity interests, including any. . . swap.” Binary options on forex are swaps under 

Section 1a(47)(A) of the Act which defines a swap to include any “any agreement, contract, or 

transaction . . . that is a put, call, cap, floor, collar, or similar option of any kind that is for the 

purchase or sale, or based on the value, of 1 or more . . . currencies . . . .” 7 U.S.C. § 1a(47) 

(2018); see also CFTC v. Scharf, No. 3:17-cv-774-J-32MCR, 2019 WL 3139980, at *6 (M.D. 

Fla. Apr. 25, 2019) (default order) (holding that binary options are swaps); CFTC v. Vault 

Options, Ltd., No. 1:16-CV-01881, 2016 WL 5339716, at *2, *6 (N.D. Ill. July 20, 2016) 

(default order) (holding that binary options are swaps). 

As described above, during the Relevant Period Wilson acted as a CPO by soliciting and 

collecting funds for a pooled investment vehicle to trade off-exchange binary options on forex, 

and he did so using the means or instrumentalities of interstate commerce. At any given point in 

time, each pool had approximately 15 to 30 participants. Because Wilson engaged in this 

conduct without being registered with the Commission as a CPO, Wilson violated Section 4m(1) 

of the Act. 

B. Wilson Violated Regulation 4.20(a)(1) 

Regulation 4.20(a)(1) provides that a “commodity pool operator must operate its pool as 

an entity cognizable as a legal entity separate from that of the pool operator.” 17 C.F.R. 

§ 4.20(a)(1) (2021). Wilson incorporated a business entity called Young Millionaires, but did 

not take steps to operate the Young Millionaires pool as a separate entity beyond the mere 

incorporation of the business entity. For instance, he did not open bank or trading accounts in 

Young Millionaires’ name, and did not maintain separate corporate records. Similarly, although 

Wilson eventually incorporated a business entity called Simple Wealth LLC, the creation of that 

entity occurred long after Wilson began operating a pool under the name of Simple Wealth, and 

Wilson did not take steps to operate the Simple Wealth pool as a separate entity beyond the mere 

incorporation of a business entity. Wilson did not incorporate a business entity for Simple 

Wallet. Accordingly, Wilson failed to operate each pool as a separate legal entity and thus 

violated Regulation 4.20(a)(1). 

C. Wilson Violated Regulation 4.20(b) 

Regulation 4.20(b) provides that all funds received by the CPO from existing or 

prospective pool participants “must be received in the pool’s name.” 17 C.F.R. § 4.20(b) (2021). 
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As described above, Wilson received funds from existing or prospective pool participants via 

various accounts in his name. Accordingly, Wilson violated Regulation 4.20(b). 

D. Wilson Violated Regulation 4.20(c) 

Regulation 4.20(c), 17 C.F.R. § 4.20(c) (2021), prohibits CPOs, whether registered or 

not, from commingling the property of any pool that it operates or intends to operate with the 

property of any other person. During the Relevant Period, Wilson commingled pool property 

with his own property by (a) transferring funds from pool participants to personal bank accounts, 

where those funds were commingled with funds from Wilson’s other business ventures and 

sources of income, and (b) transferring pool participants’ funds to accounts in Wilson’s name at 

foreign trading platforms, where those funds were commingled with Wilson’s personal funds. 

Because Wilson commingled pool property with his own property, he violated Regulation 

4.20(c). 

IV. FINDINGS OF VIOLATIONS 

Based on the foregoing, the Commission finds that, during the Relevant Period, Wilson 

violated Section 4m(1) of the Act, 7 U.S.C. § 6m(1) (2018), and Regulation 4.20 (a)-(c), 

17 C.F.R. § 4.20(a)-(c) (2021). 

V. OFFER OF SETTLEMENT 

Wilson has submitted the Offer in which he, without admitting or denying the findings 

and conclusions herein: 

A. Acknowledges service of this Order; 

B. Admits the jurisdiction of the Commission with respect to all matters set forth in this 

Order and for any action or proceeding brought or authorized by the Commission based 

on violation of or enforcement of this Order; 

C. Waives: 

1. The filing and service of a complaint and notice of hearing; 

2. A hearing; 

3. All post-hearing procedures; 

4. Judicial review by any court; 

5. Any and all objections to the participation by any member of the Commission’s 

staff in the Commission’s consideration of the Offer; 

6. Any and all claims that he may possess under the Equal Access to Justice Act, 

5 U.S.C. § 504 (2018), and 28 U.S.C. § 2412 (2018), and/or the rules promulgated 
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by the Commission in conformity therewith, Part 148 of the Regulations, 

17 C.F.R. pt. 148 (2021), relating to, or arising from, this proceeding; 

7. Any and all claims that he may possess under the Small Business Regulatory 

Enforcement Fairness Act of 1996, Pub. L. No. 104-121, tit. II, §§ 201–253, 110 

Stat. 847, 857–74 (codified as amended at 28 U.S.C. § 2412 and in scattered 

sections of 5 U.S.C. and 15 U.S.C.), relating to, or arising from, this proceeding; 

and 

8. Any claims of Double Jeopardy based on the institution of this proceeding or the 

entry in this proceeding of any order imposing a civil monetary penalty or any 

other relief, including this Order; 

D. Stipulates that the record basis on which this Order is entered shall consist solely of the 

findings contained in this Order to which Wilson has consented in the Offer; and 

E. Consents, solely on the basis of the Offer, to the Commission’s entry of this Order that: 

1. Makes findings by the Commission that Wilson violated Section 4m(1) of the 

Act, 7 U.S.C. § 6m(1) (2018), and Regulation 4.20 (a)-(c), 17 C.F.R. § 4.20(a)-(c) 

(2021); 

2. Orders Wilson to cease and desist from violating Section 4m(l) of the Act and 

Regulation 4.20(a)-(c); 

3. Orders Wilson to pay a civil monetary penalty in the amount of $150,000.00, plus 

post-judgment interest; and 

4. Orders Wilson and his successors and assigns to comply with the conditions and 

undertakings consented to in the Offer and as set forth in Part VI of this Order. 

Upon consideration, the Commission has determined to accept the Offer. 

VI. ORDER 

Accordingly, IT IS HEREBY ORDERED THAT: 

A. Wilson and his successors and assigns shall cease and desist from violating Section 

4m(1) of the Act, 7 U.S.C. § 6m(1) (2018), and Regulation 4.20 (a)-(c), 17 C.F.R. 

§ 4.20(a)-(c) (2021). 

B. Wilson shall pay a civil monetary penalty in the amount of one hundred fifty thousand 

dollars ($150,000.00) (“CMP Obligation”) within ten (10) days of the date of the entry of 

this Order. If the CMP Obligation is not paid in full within ten (10) days of the date of 

entry of this Order, then post-judgment interest shall accrue on the CMP Obligation 

beginning on the date of entry of this Order and shall be determined by using the 

Treasury Bill rate prevailing on the date of entry of this Order pursuant to 28 U.S.C. 

§ 1961 (2018). 
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Wilson shall pay the CMP Obligation and any post-judgment interest by electronic funds 

transfer, U.S. postal money order, certified check, bank cashier’s check, or bank money 

order. If payment is to be made other than by electronic funds transfer, then the payment 

shall be made payable to the Commodity Futures Trading Commission and sent to the 

address below: 

MMAC/ESC/AMK326 

Commodity Futures Trading Commission 

Division of Enforcement 

6500 S. MacArthur Blvd. 

HQ Room 181 

Oklahoma City, OK 73169 

(405) 954-6569 office 

(405) 954-1620 fax 

9-AMC-AR-CFTC@faa.gov 

If payment is to be made by electronic funds transfer, Wilson shall contact Marie Thorne 

or her successor at the above address to receive payment instructions and shall fully 

comply with those instructions. Wilson shall accompany payment of the CMP 

Obligation with a cover letter that identifies the paying Respondent and the name and 

docket number of this proceeding. Wilson shall simultaneously transmit copies of the 

cover letter and the form of payment to the Chief Financial Officer, Commodity Futures 

Trading Commission, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 

20581. 

C. Wilson and his successors and assigns shall comply with the following conditions and 

undertakings set forth in the Offer: 

1. Public Statements: Wilson agrees that neither he, nor any of his successors and 

assigns, agents or employees under his authority or control shall take any action 

or make any public statement denying, directly or indirectly, any findings or 

conclusions in this Order or creating, or tending to create, the impression that this 

Order is without a factual basis; provided, however, that nothing in this provision 

shall affect Wilson’s: (i) testimonial obligations; or (ii) right to take legal 

positions in other proceedings to which the Commission is not a party. Wilson 

and his successors and assigns shall comply with this agreement, and shall 

undertake all steps necessary to ensure that all of his agents and/or employees 

under his authority or control understand and comply with this agreement. 

2. Partial Satisfaction: Wilson understands and agrees that any acceptance by the 

Commission of any partial payment of Wilson’s CMP Obligation shall not be 

deemed a waiver of his obligation to make further payments pursuant to this 

Order, or a waiver of the Commission’s right to seek to compel payment of any 

remaining balance. 

3. Change of Address/Phone: Until such time as Wilson satisfies in full his CMP 

Obligation as set forth in this Order, Wilson shall provide written notice to the 
Commission by certified mail of any change to his telephone number and mailing 

address within ten calendar days of the change. 

The provisions of this Order shall be effective as of this date. 

By the Commission. 

~h%U4-

Christopher J. Kirkpatrick 

Secretary of the Commission 

Commodity Futures Trading Commission 

Dated: August 26, 2021 

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