Action against Defendants, a Bitcoin hedge fund and its CEO, for alleged operation of a Bitcoin Ponzi scheme. According to the CFTC, Defendants promised to use investor funds in a high-frequency algorithmic trading strategy but instead used the funds to make payouts to other investors. The CFTC also alleges that Defendants falsified performance reports and staged a computer hack to conceal trading losses and misappropriation of investor funds. Defendant company has agreed to pay restitution of $554,734.48 and a civil penalty of $1.854 million. Defendant CEO has agreed to pay restitution of $492,064.53 and a civil penalty of $177,501.