The United States Commodity Futures Buying and selling Fee (CFTC) is having bother finding Benjamin Reynolds, who's allegedly liable for a cryptoc
The United States Commodity Futures Buying and selling Fee (CFTC) is having bother finding Benjamin Reynolds, who’s allegedly liable for a cryptocurrency Ponzi scheme price over $140 million.
Monetary information outlet FinanceFeeds reported on Jan. 6 that the CFTC has filed a movement with the New York Southern District Court docket. Extra exactly, the regulator filed for the service of course of on Reynolds by publication on The Each day Telegraph and increasing for sixty days the time restrict by which the service have to be effected on him and his agency.
A significant Bitcoin ponzi scheme
In mid-June, the CFTC launched motion towards the corporate over an alleged $147 million Bitcoin (BTC) Ponzi. The CFTC filed towards the Reynolds with the aforementioned court docket for allegedly defrauding over a thousand buyers of at the least 22,858 Bitcoin.
In a memorandum accompanying the movement, the regulator reportedly explains that it tried to serve Reynolds on the handle listed as his “service handle” within the incorporation papers of Management Finance, the agency that managed the scheme. When the method server arrived on the handle, he found that it doesn’t truly exist.
The CFTC additionally tried to e-mail Reynolds on the solely identified e-mail handle related to him and his firm, however obtained again an error message indicating that the message couldn’t be delivered. The regulator discovered from affected buyers that the Ulsan District Prosecutors’ Workplace in South Korea can be investigating the scheme, however had equally did not contact Reynolds.
Cryptocurrency scams
Scammers have lengthy been utilizing the speculative enthusiasm surrounding cryptocurrencies to lure in and defraud unsuspecting buyers. As Cointelegraph reported, Bitcoin rip-off advertisements that includes the likeness of Martin Lewis have continued to look on social media regardless of Lewis’ earlier efforts to stop such unlawful practices.
One significantly well-known cryptocurrency-related rip-off is OneCoin, which was a $four billion pyramid scheme. The rip-off was first discovered in Might 2015. Nevertheless, proceedings are still ongoing, and OneCoin’s web site shut down solely in the beginning of December final yr.