The US Commodity Futures Trading Commission (CFTC) has fined one Bitcoin trader and fined him with more than $1 million for running a fraudulent Bitcoin and Litecoin scheme. This report is everywhere in the bitcoin news today, mostly because of the high fine that CFTC has issued.
As one press release by CFTC noted this Friday, the Arizona-based trader named Joseph Kin, admitted to defrauding investors of hundreds of thousands of dollars after misappropriating more than $600,000 of the funds by his (previous) employer.
Between the months of September and November last year (2017), Kim managed to transfer Bitcoin and Litecoin from his employer, which is a Chicago-based trading firm – to his own personal amounts which caused the firm losses of $601,000 as the release notes.
When asked about missing tokens, Kin stated that the security issues with his exchange required transfers into other accounts, which is how he managed to steal the money from his employer at the time.
He didn’t even stop at this point – he later started soliciting funds from other individual investors in order to continue trading in crypto with the hope of making profits and repaying his ex-employer. After lying that he had voluntarily left his employer to start his own trading company, Kim also falsely claimed that he would invest the funds in a low-risk arbitrage strategy.
In addition to the $1,146,000 fine, the CFTC has permanently banned Kim from trading of cryptocurrencies and sentenced him to 15 months in Jail.
“Today’s Order stands as yet another in the string of cases showing the CFTC’s commitment to actively police the virtual currency markets and protect the public interest,” is what is written in the CFTC enforcement document.
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“We will never accept won or renminbi or francs or cryptocurrency, or any other currency. You have to relieve your debts to the state of Ohio with U.S. dollars. That’s what we’re currently accepting. This platform just allows for that exchange, basically before that debt is settled to the state of Ohio.”Sprague pointed out that the treasury is reviewing how the program can be expanded and they are looking into the potential risks that can come up by using this method of tax payments. Ohio is working hard to attract blockchain-related businesses to the state. The state has already passed a law allowing businesses to pay taxes in crypto but the State Treasurer Josh Mandel stated that the legislation ‘’pants a flag’’ in Ohio regarding cryptocurrency adoption. Two days ago, the County Auditors’ Association of Ohio announced the gathering of a group that will work to explore the benefits of blockchain in real estate and transfer of land titles.
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