WA DFI Charges Trage Technologies and Kreighbaum for Crypto Investments

WA DFI Securities Enforcement

Filed February 27th, 2026

Detected March 19th, 2026

Summary

The Washington State Department of Financial Institutions has issued a Statement of Charges against Trage Technologies, Ltd. and Christopher Lee Kreighbaum for alleged unregistered cryptocurrency investments and misrepresentations. The action seeks cease and desist orders, restitution, and fines.

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What changed

The Washington State Department of Financial Institutions (DFI) has filed a Statement of Charges (S-25-3921-26-SC01) against Trage Technologies, Ltd. and Christopher Lee Kreighbaum. The DFI alleges that in 2024, Trage Tech offered and sold $36,600 worth of unregistered cryptocurrency arbitrage investments to four Washington investors, with Kreighbaum acting as an unregistered salesperson. The respondents are accused of making material misrepresentations and misappropriating investor funds, transferring USDT to various counterparties instead of engaging in arbitrage trading, leading to investor losses.

This enforcement action seeks to impose penalties including cease and desist orders, restitution for investors, and fines and costs. The respondents have the right to request a hearing. Regulated entities, particularly those involved in cryptocurrency offerings, should review their compliance procedures regarding registration requirements and truthful representation of investment strategies to avoid similar allegations and potential penalties.

What to do next

Review cryptocurrency offering disclosures for compliance with registration and anti-fraud provisions.
Assess internal controls for fund segregation and use of investor assets.
Consult legal counsel regarding potential exposure to similar enforcement actions.

Penalties

Cease and desist; Restitution; Fines & costs

Source document (simplified)

Trage Technologies, Ltd; Christopher Lee Kreighbaum – Statement of Charges – S-25-3921-26-SC01

Case summary

On February 27, 2026, the Washington State Department of Financial Institutions Division of Securities entered a Statement of Charges (S-25-3921-26-SC01) against Trage Technologies, Ltd; Christopher Lee Kreighbaum.

Order details

Order File: S-25-3921-26-SC01

Laws & Rules: RCW 21.20.140, RCW 21.20.040, RCW 21.20.010

Penalties/Remedies:

Cease and desist;
Restitution; and
Fines & costs

Allegations

In 2024, Trage Technologies, Ltd. (“Trage Tech”) offered and sold $36,600 worth of unregistered cryptocurrency arbitrage investments to four Washington investors. Christopher Lee Kreighbaum received compensation as an unregistered salesperson for at least two of the investments.
The Respondents made material misrepresentations about Trage Tech and the offering to investors.
Instead of using the investors’ funds to engage in arbitrage trading, as represented, immediately after the investors funded their USDT wallets on Trage Tech’s platform, Trage Tech transferred the USDT to another wallet. The commingled investor assets were then sent to various counterparties, including parties overseas. The investors were unable to recover their funds. The Respondents have a right to request a hearing on the Statement of Charges.