Owner of bitcoin trading scheme Control-Finance ordered to pay $572 million

Mar 26, 2021 | The Block News | 0 comments

owner-of-bitcoin-trading-scheme-control-finance-ordered-to-pay-$572-million

The U.S. District Court for the Southern District of New York has ordered the operator of bitcoin trading scheme Control-Finance to pay nearly $143 million in restitution and $429 million in penalties.

Benjamin Reynolds allegedly failed to attend multiple court dates in a case from the Commodity Futures Trading Commission (CFTC), resulting in a default judgment against him, according to an announcement from the regulator.

The CFTC first brought the case against Reynolds in June 2019, alleging he utilized a public website, social media and emails to solicit 22,190.542 BTC, or $143 million at the time. He told customers his firm, Control-Finance, employed crypto traders who would trade their deposits for a guaranteed profit.

However, the CFTC alleges Reynolds never made trades on his customers’ behalf. He later said he would return all bitcoin deposits by October 2017, but failed to do so, according to the CFTC, and instead kept the deposits for himself.

After Reynolds repeatedly did not appear in court to address the charges, the CFTC proposed a default judgment in August of last year. The proposal included the $572 million in penalties and restitution Reynolds now faces. With the financial penalties, the court order also prohibits Reynolds from trading in CFTC-regulated markets or registering with the CFTC.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

News Source from TheBlockCrypto.com

Related Articles

Three Ether ETFs begin trading on Toronto Stock Exchange

Three Ether ETFs begin trading on Toronto Stock Exchange

Three ether (ETH) exchange-traded funds (ETFs) began trading on the Toronto Stock Exchange on Tuesday. The ETFs are by Canada-based asset managers: Purpose Investments, CI Global Asset Management, and Evolve Funds Group. The three firms received the green light from...

Andreessen Horowitz leads $28M Aleo raise

Andreessen Horowitz leads $28M Aleo raise

Several other high-profile investors contributed to the raise, including Coinbase Ventures and Galaxy Digital. Aleo, a privacy-focused blockchain, has secured $28 million in investments to bring its zero-knowledge applications to a wider market.California-based...

Pin It on Pinterest

Share This