Defendants in ATM Coin Binary Options Scam Ordered to Pay $4.25 Million Fine
A New York base court this week ordered defendants to pay a fine amounting to $4.25 million for being part of an investment fraud scheme. The fraud in question involved the use of the crypto ATM coin.
The case in question was initially brought forward by the Commodity Futures Trading Commission in April 2018. On November 1 this year, the commission released a statement indicating that an order had been entered against several entities by the U.S District Court for the Eastern District of New York.
This order pertained to the misappropriation of customer money as well as taking part in fraud. Nathan Mullins and Blake Harrison Kantor were the main defendants and were enjoined with Mercury Cove, Blue Bit Banc, G. Thomas Client Services, and Turks.
Investment Scam Concerning ATM Coin Crypto Assets
This case, which had initially been filed last year by the CFTC was brought in connection with the Division of Enforcement’s Virtual Currency Task Force found within the commission. During its filing, the defendants had been charged with committing fraud by taking part in a binary options scam.
It was a binary options scam that involved the use of a virtual crypto-asset referred to as the ATM Coin. The court established that the defendants used this coin as part of their scam scheme. It proceeded to charge them with funds misappropriation via binary options investments.
According to a CFTC statement, the scheme masterminds converted the investments held by Blue Bit into ATM coin. The coin had been created by Kantor, who had then gone ahead to mislead Blue Bit investors that it was worth a tidy sum of money, yet it was worthless in reality.
The commission released a binary options Fraud Advisory noting that some of the binary options traded on exchanges were not fully compliant with the country’s financial regulations.