- CFCT: Thompson Sent the Entire Funds to Third Parties
- US Resident Charged with $7M Bitcoin Fraud by CFTC
According to reports, there is a fresh case of Bitcoin fraud. This time the matter was brought up in connection with a US resident. It is understood that the United States CFTC (Commodity Futures Trading Commission) has charged a particular US resident with $7 million Bitcoin fraud. The defendant in the case is Jon Barry Thompson of Easton Pennsylvania.
CFTC: Thomson Knowingly Made False Representations to Customers over BTC Purchase
Via an official news that was published on September 30, the US regulator revealed that Thompson of Pennsylvania, was being charged with “knowingly and recklessly making fugacious representations to clients and misleading them in connection with the purchase of Bitcoin worth $7 million.”
The official document of the filing alleges that (although contrary to Thompson’s claims) neither the defendant nor any company he was affiliated to had possession of Bitcoin he pledged to deliver to the victims.
CFCT: Thompson Sent the Entire Funds to Third Parties
According to the regulator, after receiving funds from the clients, Thompson sent all of their money to third parties. The BTC that was promised the customers wasn’t delivered to them and their funds were not safe as Thompson had promised.
Thompson is also accused of lying to the clients about the location of the Bitcoin he promised them. It is believed that he couldn’t give any valid reasons why the transaction wasn’t completed, neither could he give an update on the status of the customers’ funds.
The victims brought the issue before the court hand in hand with the CFTC’s Arm of Enforcement Virtual Currencies Task Force. Now, Thompson must answer to this charges.
Bitcoin (BTC) Price Today – BTC / USD
| Name | Price | 24H % |
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 | $0.00 | -0.15% |
The regulator is looking to get restitution, and disgorgement. It will likely impose civil monetary penalties, or even permanent trading and registration bans on Thompson for his role in the scandal.
CFCT: Uprooting Fraudulent Individuals is Paramount to Crypto Development
Rooting out fraudulent individuals is “essential” to crypto development. According to James McDonald the CFTC’s Director of Enforcement:
“Rooting out fraud and misconduct involving digital assets is crucial to pushing for the responsible development of cryptocurrencies. The CFTC will keep working to root out fraudsters and hold them accountable where appropriate. We will work closely with the criminal law enforcement to deal with fraud.”
As reported earlier, a recent controversy that involved the CFTC came to light after LedgerX claimed that Christopher Giancarlo, the CFTC’s former chairman, blocked the approval of LedgerX’s Derivatives Clearing Organization registration due to his personal bias against the CEO of the company Paul Chou.
Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.
