A US federal court has ruled against a crypto Ponzi scheme and its founder in a lawsuit filed by the Commodity Futures Trading Commission (CFTC). The Ponzi scheme, known as Venture Capital Investments LLC (VCI), is ordered to pay $900,000 in restitution and penalties. The CFTC announced that the District Court of Colorado had entered a judgment against the crypto company and its founder, Breonna Clark. The court found Clark guilty of “fraudulently soliciting and misappropriating funds from clients in a digital asset and forex Ponzi scheme.”
VCI founder ordered to pay $450,302 in restitution to the clients she defrauded.
Breonna Clark has been ordered to pay $450,302 in restitution to the clients she defrauded. The court also ordered her to pay 450,302 as a civil monetary penalty. She will also have to cater to all the costs the CFTC incurred over the trial course. “Additionally, the defendants are now permanently enjoined from engaging in conduct that violates the Commodity Exchange Act (CEA) and CFTC regulations, as well as banned from registering with the CFTC and trading in any CFTC-regulated markets.”
VCI founder lured 72 people into investing $534,829 in her company.
The US CFTC brought charges against Clark in February, alleging that the Colorado resident lured 72 people into investing $534,829 in her company. She claimed to offer digital currency and forex investment services. However, she only used the money on personal expenses, including buying a BMW. The crypto company founder also used some of the money to make payments to her investors in a Ponzi-style operation. The CFTC also accused Clark of misleading prospective clients about her expertise, experience, and investment track record and promised profitability to the clients.
