Crypto Trading Co. Ran $147M Ponzi Scheme, CFTC Says

Law360 (June 17, 2019, 9:45 PM EDT) -- A U.K.-based company that claimed to provide customers with guaranteed profits through cryptocurrency trading stole over 22,858 bitcoins in a Ponzi scheme-like fraud worth more than $147 million, the Commodities Futures Trading Commission alleged in a complaint filed Monday.

Control-Finance Limited and its sole director, Benjamin Reynolds, defrauded more than 1,000 investors, including some in the U.S., by soliciting bitcoin to prop up a trading operation that was purportedly generating consistent returns when no such operation existed, according to a complaint filed in the U.S. District Court for the Southern District of New York.

The CFTC alleges that Reynolds and his...

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New York Southern

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Securities/Commodities

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Date Filed

June 17, 2019

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