The United States Commodity Futures Trading Commission (CFTC) has requested the court to proceed the $147 million crypto scam case without the person who supposedly was involved in this. For quite a long time, the CFTC has been trying to locate the person but was unable to do so.
The missing man is the director of UK-based cryptocurrency investment firm Control-Finance and is popularly known as Benjamin Reyolds.
The company worked from May 2017 to September 2017, and during that time period, it has generated 22,859 Bitcoin from over 1000 of its customers, alleges the CFTC.
Control-Finance Creates False Weekly Trade Report
The CFTC in its complaint has stated that the UK-based crypto-investment firm attracted more investors with a promise of monthly trading profit of 45 percent.
In June 2019, while filing its complaint, the CFTC claimed that the Control-Finance made a falsify weekly trade report to keep its investors happy, but the fact was the company did not make any trade on behalf of its customers and nor did it earned any profit for them.
The CFTC further mentioned that in September 2017, after the Control-Finance was deserted, it informed its customers that their Bitcoins were safe with the company. The UK-based crypto-investment firm further claimed that soon it would return its customers’ Bitcoin but the fact was it misused their digital asset.
CFTC To File Motion
As the CFTC was not able to trace Reynolds, therefore, it has requested the court to settle down the matter without him.
On July 05, the CFTC wrote a letter to the New York Southern District Court stating that it has been planning to file a motion for default judgement against Reynolds, by August 20, 2020.
Recently, the partner at the US law firm BakerHostetler, Marc Powers, has said, “In the motion, it is likely that the CFTC will seek a judgment for the full amount of the fraud alleged- $147 million- plus interest from 2017, plus some amount of penalty”.
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