Blog Posts Tagged With Cyber and Cryptocurrency

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CFTC v. John Doe 1 a/k/a Morgan Hunt d/b/a Diamonds Trading Investment House, and John Doe 2 a/k/a Kim Hecroft d/b/a First Options Trading (N.D. Tex. June 28, 2019, Contested)

Action against Defendants, traders and portfolio managers, for an alleged fraudulent investment scheme.  According to the CFTC, Defendants solicited Bitcoin from investors and falsely claimed they would use the funds for their investors’ benefit.  The CFTC also alleges that Defendants misrepresented their experience and track records and misappropriated investor funds.  The court ordered that Defendant Hunt pay restitution of $3,941.35 plus post-judgment interest and a civil monetary penalty of $180,000.  The court also ordered that
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CFTC v. Control-Finance Limited and Benjamin Reynolds (S.D.N.Y. June 17, 2019, Contested)

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
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