CFTC Targets Control-Finance Ltd For Fraudulent Bitcoin Investor Scheme Of Nearly 23,000 BTC

  • The U.S. CFTC launches action against Control-Finance for stealing users’ funds
  • The company promised users large returns on their investments
  • The U.S. Commodity Futures Trading Commission (CFTC) has just launched an action against a fraudulent scheme related to Bitcoin (BTC). According to FinanceFeeds, the scammers were dealing with over $147 million in BTC.

US CFTC Launches Action Against Bitcoin Fraudsters

A few days ago, the regulatory agency of the United States filed a complaint with the New York Southern District Court against Control-Finance Ld. Apparently, the firm defrauded over 1,000 investors so as to launder over 22,858 Bitcoin.

The CFTC has also decided to start actions against Benjamin Reynolds, the head of the initiative. As per the report, both Control-Finance and Reynolds exploited the enthusiasm that investors had for Bitcoin between May 1, 2017, and October 31, the same year. At that time, the cryptocurrency market was expanding. Initial Coin Offerings (ICOs) and other initiatives were also expanding in the market.

FinanceNeeds explains that Control-Finance solicited investors to purchase their Bitcoin with cash and deposit it with the firm. The company promised investors daily returns on their funds by employing professional crypto traders. In order to keep with the fraudulent scheme, the founders were sending part of the new funds deposited by users to older clients making them think they were earning money through trading activities.

Finally, the website was shut down on September 10, 2017. The payments for investors were suspended and the advertising content from its profiles was also eliminated. At the same time, the firm informed they were going to be reimbursing customers by late October or November 2017.

There were different companies and firms that were scamming users promising them to receive large returns on their investments. One of these firms was BitConnect that was not able to keep operating in the market and it finally stopped offering services to users. The company promised very attractive daily and monthly returns that were clearly not real and too good to be true.

A short time ago, the British Financial Conduct Authority (FCA) warned about a fraudulent firm that was stealing the name of the Swiss Investment Corporation, which is a firm authorized by the FCA that offers crypto-related investment solutions. The regulatory agency issued another warning about a fraudulent entity that was a clone of the investment bank Goldman Sachs.

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