The CFTC submits a default judgment document yesterday against the director of a huge fraudulent Bitcoin scheme worth $147 million as we are reading more in the Bitcoin scam news.
The Commodity Futures Trading Commission submitted a document to the New York Southern District Court to look for a default judgment against Benjamin Reynolds who was a director of a fraudulent cryptocurrency scheme Control-Finance. According to the reports from Finance Feeds, Reynolds didn’t defend the CFTC’s action but forced the regulator to obtain a Certificate of Default against the defendant. CFTC submits the document after filing a lawsuit against Control-Finance and the director back in 2019 in June, for illegally obtaining and mismanaging the investors’ cryptocurrencies that reached about $147 million in value.
Control-Finance was working as a Bitcoin-investment scheme based in the United Kingdom. The company promised its investors high returns with a 1.5% daily and 45% monthly profits. The defendants also told the investors that their BTC deposits will be protected thanks to the many risk diversification methods that they had. According to the CFTC complaint, Control-Finance and Reynolds conducted the fraudulent operations starting in 2017 May to October e2017. The regulator says that the scheme exploited more than 1000 investors and generated about 22,858,822 BTC worth that equal to $147 million.
The commission further explained that the company never conducted a single trade with the deposits and investors only saw fake balances on their accounts. The scheme published reports with fake data to keep up lying to the investors. Aside from claiming that it engages in crypto trading, the company was also operating as a pyramid scheme. It used its “affiliate Program” to offer a commission to customers who invite new users to invest in the company. All of these were done through websites and social media accounts via Twitter, YouTube, and Facebook.
By September 2017, the Control-Finance website was no longer accessible and all of the advertisements on the social media accounts were deleted. The defendants stopped paying the investors and Affiliate Program members. The CFTC accused Reynolds and his company of laundering money in Bitcoin through thousands of blockchain transactions. The defendants could face monetary penalties including permanent trading and registration bans. For more updates on the matter make sure to come back here, on DC Forecasts!
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