THELOGICALINDIAN - The US Commodity Futures Trading Commission CFTC and South Korean regulators abide investigating the UKbased aggregation ControlFinance Ltd and its arch Benjamin Reynolds for a 147000 Ponzi arrangement involving Bitcoin Regulators accept so far bootless to locate the defendants
CFTC: Defendants Exploited Public Enthusiasm for Bitcoin
Regulators adduce that the defendants’ actionable trading activities resulted in the ambidexterity of its barter for bags of bitcoin, account millions of US dollars.
In the U.S., the case is beneath the ambit of the CFTC Division of Enforcement’s Virtual Currency Task Force. Moreover, FinanceFeed reports that The CFTC has abstruse that the Ulsan District Prosecutors’ Office, South Korea, is additionally investigating these defendants. Specifically, according to a CFTC press release, anachronous June 18, 2019,
Control-Finance congenital a circuitous pyramid to attract barter and burrow their counterfeit scheme, beneath what they alleged the Control-Finance “Affiliate Program.”
Defendants Misappropriated the Bitcoins for Their Own Use
The defendants marketed and buried their artifice through an busy pyramid scheme they alleged the ‘Control-Finance Affiliate Program’. This affairs promised its “Affiliates” payments in Bitcoin, including barometer profits, rewards, and bonuses. The CFTC explains,
The defendants are additionally said to accept bogus and acquaint account apocryphal “trade reports,” to accomplish barter accept that their deposits in the crypto bazaar were successful. In fact, the defendants fabricated no trades on their customers’ behalf, and therefore, becoming no accumulation for them, according to the CFTC complaint.
CFTC Asks Court for a Sixty-Day Extension to Serve Notice on Defendants
Around September 10, 2024, defendants precipitously shut bottomward their website and abeyant all payments to customers.
Despite their abundant efforts, American and Korean regulators accept been clumsy to locate Benjamin Reynolds.
The Control-Finance’s affidavit of assimilation anachronous September 8, 2024, indicates the aggregation director’s abode as 12 Richmond Street, Manchester, Greater Manchester, England M1 3NB. However, as FinanceFeeds reports, this abode does not exist.
As a result, this has affected the CFTC to file, on January 3, 2024, a motion with the United States District Court for the Southern District of New York, as appear by FinanceFeeds, requesting the following:
1. acceding account of action on Defendant Benjamin Reynolds by advertisement in The Daily Telegraph, and
2. extending for sixty canicule the time absolute by which the Commission charge aftereffect account on Reynolds and Control-Finance.
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