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August 9, 2022
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Bitcoin scammer will have to pay $ 571 million fine

A man will have to pay $ 571 million for a Bitcoin scam, according to a New York court ruling.

The investigation resulted from a 2019 U.S. CFTC complaint against a British company, Control-Finance Limited, led by Benjamin Reynolds of Manchester.

Specifically, as reported in a communication press release, between May 1 and October 31, 2017, the company allegedly invited customers to transfer bitcoin to it with the promise that it would reinvest them, entrusting them to experienced traders, with profits that could come in to 45% in one month.

Reynolds collected at least 22,190,542 bitcoin, worth $ 143 million at the time ($ 1.2 billion today), from more than 1,000 customers worldwide, including 169 in the United States.

The CFTC reports that Reynolds was ordered on March 2 by the United States District Court for the Southern District of New York to pay $ 143 million in restitution to defrauded customers. In addition, he was fined $ 429 million.

This is because, in addition to the proven fraud using a website, social media and affiliate program, Benjamin Reynolds also allegedly violated the Commodity Exchange Act and CFTC rules by trading his service in the United States without proper licenses.

According to the U.S. regulator and courts, the Reynolds company was in fact transferring bitcoin, but it was not reinvesting them and therefore was not able to guarantee profits, rewards and bonuses. In addition, when Control-Finance stopped trading in October 2017, it had guaranteed that it would return the money to its investors, but it would not.

And it is not necessarily happening now either. In fact, the CFTC note explains:

“The CFTC warns victims that restitution orders may not result in any lost money being recovered because offenders may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of clients and to ensure that offenders are held accountable ”.

Bitcoin scams, how to stay away from them

During these times of exaggeration around Bitcoin, it is easy to find scams and false promises like those being pursued by the CFTC. To avoid them, there is an always valid recommendation: be wary of those who offer high, quick and easy returns.

As the case involving Benjamin Reynolds shows, even when fraud is proven, it can be very difficult to recover the money invested and lost.

Therefore, it is always a good idea to obtain information on the platforms chosen for your investments and, above all, not to invest more than you are willing to lose.

Source: Cryptonomist

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