The US CFTC seeks $429 million penalty from the crypto scam Control-Finance.

The US CFTC has submitted a proposed default judgment against Benjamin Reynolds, the sole director and owner of the crypto scam Control-Finance.

The United States Commodity Futures Trading Commission (CFTC) has submitted a proposed default judgment against Benjamin Reynolds, the sole director and owner of fraudulent cryptocurrency scheme Control-Finance. The document, filed with the New York Southern District Court on August 20, 2020, the CFTC explains that Reynolds failed to appear or answer the CFTC’s Complaint. According to the US CFTC, the crypto scam company owner will have to pay restitution in the amount of just close to $143 million. Also, he will have to pay a civil monetary penalty in the amount of $429 million. 


The proposed judgment prohibits Reynolds from trading in crypto. 

The proposed judgment by the CFTC includes a permanent injunction. Reynolds will be permanently restrained, forbidden, and prohibited from trading on or subject to any registered entity’s rules, entering into any transactions involving “commodity interests” and cryptocurrencies. The CFTC claimed that Control-Finance Limited and Reynolds exploited public enthusiasm for Bitcoin by operating a fraudulent scheme to misappropriate at least 22,858.822 Bitcoin, which reached a valuation of over $147 million, from more than 1,000 customers. The defendants diverted portions of new customers’ Bitcoin investments to other customers in the manner of a “Ponzi” scheme, falsely representing that these misappropriations were profits generated from virtual currency trading.


Crypto scams continue to rise amid the pandemic. 

Cryptocurrency scams have increased amid the ongoing COVID-19 pandemic across countries. Several countries reported a noticeable increase in malware attacks and other types of crypto scams. The Attorney General of state California, Xavier Becerra, had earlier issued a warning for investors and consumers highlighting the rise in cryptocurrency scams. Authorities across countries also reported a rise in crypto scams that included a spike in ransomware attacks, Ponzi schemes, and other different types of scams involving digital currencies.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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