Court Orders Bitcoin (BTC) Hedge Fund And Its CEO To Pay Fine Of $2.5M For Running A Fraudulent Ponzi Scheme – BTC News Today

According to an official announcement, a federal court in New York has ordered a Bitcoin (BTC) hedge fund and its CEO to pay a fine of $2.5 million. The hedge fund involved is Gelfman Blueprint Inc. (GBI), and its CEO is Nicholas Gelfman. The court ordered them to pay the fine of $2.5M for running a fraudulent Ponzi scheme.

Gelfman Blueprint Inc. is a dominant Bitcoin hedge fund that was established back in 2014. A year after its establishment, the firm boasted of 85 clients and more than 2,300 Bitcoins under management. Back in September last year, the CFTC (Commodity Futures Trading Commission) filed an anti-fraud lawsuit against the firm. The recent order by the New York federal court is the continuation of the lawsuit filed by the US CFTC.

The CFTC Charges Gelfman Blueprint Inc. for Operating a Ponzi Scheme for Two Years

Gelfman Blueprints Inc. was sued by the CFTC for operating a Ponzi scheme for two years (2014-2016). The CFTC said GBI told its investors that it had created Jigsaw – a computer algorithm that allows for huge profits via a commodity fund. Whereas, the whole scheme was a fraud. According to the announcement, the firm and its CEO collected more than half a million dollar fraudulently from over eighty clients.

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The court has ordered the firm and its CEO to pay more than $2.5M in restitution and civil monetary penalties. The court ordered Gelfman Blueprints Inc. to pay $1,854,000 in civil monetary penalties and $554,734.48 in restitution to its customers. Whereas, the CEO of GBI, Gelfman, was ordered to pay $177,501 in civil monetary penalties and $492,064.53 in restitution to customers.

This marks another victory for the agency in the digital currency enforcement space, says James McDonald. James McDonald is the Director of Enforcement at the CFTC. The commission is determined to fish out bad players in the digital currency space and prevent the poor masses from falling into the hand of criminals.

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You Can Now Purchase a Flamethrower at Elon Musk with Bitcoin (BTC) or Ethereum (ETH)

The Boring Company of Elon Musk has just expanded its means of receiving payments. The firm now accepts payments in various digital currencies. Customers are now allowed to purchase its handheld flamethrower and accessories with Bitcoin (BTC) and Ethereum (ETH). This was announced on the product pages of the firm.

The product pages were recently updated and they include digital currency logo icons. This indicates that digital currencies such as Bitcoin (BTC), Ether, Litecoin (LTC), and Bitcoin Cash are accepted as means of payment. The firm already has some conventional means of payment such as PayPal, AMEX, MasterCard, and VISA. This means the newly added means of payment will function alongside the traditional means of payment.

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Bitcoin (BTC) Price Today – BTC / USD

Name Price24H (%)
Bitcoin (BTC)
$5,521.58
-6.02%

Bitcoin (BTC) is currently trading at $6,477 after a decrease of less than two percent over the past twenty-four hours. The current market cap of the digital currency is $112.25 billion and its trading volume over the past twenty-four hours is $3.91 billion.

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