[2019-06-18]US CFTC Brings Action Against $147 Million Bitcoin Investment Scheme

[Vladdirescu87]

The United States Commodity Futures Trading Commission (CFTC) launched action against a reportedly fraudulent $147 million bitcoin (BTC) scheme, fintech news outlet FinanceFeeds reports June 18.

On June 17, the regulator reportedly filed a complaint with the New York Southern District Court against now-defunct United Kingdom-based entity Control-Finance Ltd, which reportedly defrauded more than 1,000 investors to launder at least 22,858 bitcoin.

The CFTC also brings actions against the entity’s head, Benjamin Reynolds, stating that Control-Finance and Reynolds “exploited public enthusiasm for Bitcoin” from May 1, 2017, to October 31, 2017. The action seeks civil monetary penalties, including “permanent trading and registration bans, restitution, and disgorgement,” the report notes.

https://cointelegraph.com/news/us-cftc-brings-action-against-147-million-bitcoin-investment-scheme

[Kemarit]

What do you expect from US regulators? SEC sued KIK (https://www.thestar.com/business/2019/06/04/sec-sues-kik-for-us100m-for-illegal-securities-offering-of-digital-tokens.html). And then I have a feeling that they put a lot of pressure on Binance as well. That's why Binance US was born partnering with Fincen approved partner, and now this one. They're sending a big message right now that they can step out of their boundaries to chase bad actors in crypto, specially if it involves defrauding US citizens.

[CryptoBry]

All I am wishing for this whole drama is that the bitcoin which UK-based Control-Finance Ltd defrauded from their victims can be recovered and be returned to the rightful owners and not just be confiscated by the government. There are strict laws on scams and agencies of the government have to act accordingly in order to protect the interest of the people. This case should be pursued to its successful completion so as to teach a big message to everyone never to concoct any similar evil scheme. There is no place for scams in the cryptocurrency industry and we should be helping kick scammers out of the community wherever we are in the world. Scams are  actually the ones making the image of bitcoin and the whole cryptocurrency tainted.

[Slow death]

reading these passages:

The United States Commodity Futures Trading Commission (CFTC) launched action against a reportedly fraudulent $147 million bitcoin (BTC) scheme, fintech news outlet FinanceFeeds reports June 18.

On June 17, the regulator reportedly filed a complaint with the New York Southern District Court against now-defunct United Kingdom-based entity Control-Finance Ltd, which reportedly defrauded more than 1,000 investors to launder at least 22,858 bitcoin.

someone may think that the regulator is being very hard, but when I read another part of the article:

According to the CFTC, Control-Finance was soliciting investors to buy their bitcoin with cash and deposit it with the firm, as they claimed to guarantee daily trading profits on the deposits through employed professional cryptocurrency traders. The alleged scammers were further sending portions of new clients’ BTC deposits to other customers, misrepresenting those as actual profits generated from crypto trading.

they were running ponzi scheme. or did I misunderstand? and from what I saw from the article the punishment for them is something very light:

The CFTC also brings actions against the entity’s head, Benjamin Reynolds, stating that Control-Finance and Reynolds “exploited public enthusiasm for Bitcoin” from May 1, 2017, to October 31, 2017. The action seeks civil monetary penalties, including “permanent trading and registration bans, restitution, and disgorgement,” the report notes.

he will not be arrested or he is already arrested?