Action against Defendants, a U.K-based Bitcoin trading and investment company and its principal, for an alleged $147 million Ponzi and pyramid scheme.  According to the CFTC, Defendants made false guarantees of daily trading profits and other misrepresentations to induce investors to purchase Bitcoin and transfer the Bitcoin to Defendants.  The CFTC alleges that Defendants made no trades on investors’ behalf and instead misappropriated investor funds to, for example, make Ponzi-like payments to earlier investors.  The CFTC further alleges that Defendants falsified account statements to perpetuate the fraud.

CFTC Complaint

CFTC Press Release