American regulator prosecutes British crypto company for scam

Binomo social media scam

For allegedly running a Ponzi scheme that defrauded its investors of about $147 million, Bitcoin scam company is facing prosecution in the United States of America.

A British company, Control-Finance which was supposedly into cryptocurrency trading is now struggling to defend itself before the courts in a suit filed by the U.S. Commodity Futures Trading Commission,CFTC.

The CFTC in its suit against Control-Finance, allegedly deceived its investors that it was into trading while promising them of 1.5% profit daily and about 45% in a month.

The commodities trading commission argued that the cryptocurrency company was not engaged in any for of trading but was only running a Ponzi scheme that pays old investors with funds from new investors.

The commission said Control-Finance Ltd and Benjamin Reynolds “exploited public enthusiasm” for bitcoin by falsely representing that their “expert” traders could generate profits of 1.5 percent a day, or 45 percent a month, from it.

Reynolds and his company was fraudulently misappropriating at least 22,858,322 bitcoin worth $147 million from more than 1,000 customers.

The company was dissolved by British financial regulators in 2018.

Bitcoin scams gained popularity between 2017 and 2018 when the digital currency rose as high as $20,000 per bitcoin.

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