Scam

CFTC brings action against purported $147 million UK-based investment scheme

June 18, 2019, 12:27PM EDT

According to the complaint filed by The United States Commodity Futures Trading Commission (CFTC), UK-based cryptocurrency company Control-Finance Limited and its CEO Benjamin Reynolds misappropriated $147 million in bitcoin, Finance Feeds writes. The defendants have been charged with fraud.

CFTC claims in 2017 Control-Finance and Reynolds defrauded more than 1,000 people out of 22,858.822 bitcoin (~$147 million). Victims were asked to exchange their funds for bitcoin and deposit them with Control-Finance. The company promised returns on investment, with “guaranteed daily trading profits.” It claimed to have employed advertised claiming to have employed “expert virtual currency traders.”

The company allegedly operated a Ponzi scheme, diverting some of the funds while telling customers they were profits generated from their investments. CFTC says it also ran a pyramid scheme it advertised as an “Affiliate Program.”

The alleged scam operated from at least May 1, 2017 to Oct. 31, 2017; afterwards, the company’s website and social media were taken down, and customers stopped receiving their rewards. The defendants failed to return their clients’ funds, purportedly making off with approximately $150 million. 

CFTC launched the action against the firm, seeking “civil monetary penalties and ancillary relief, including but not limited to permanent trading and registration bans, restitution, and disgorgement.”

Related Reading