The CFTC and the DOJ charged (see here and here) the principal of a cryptocurrency escrow
company for making false statements to two customers who had given
the principal $7 million that their bitcoin would be
"safeguarded" by his company.
According to the CFTC, neither the principal nor his company had
control over the customers' bitcoin. Additionally, the CFTC
alleged that (i) the customers never received the bitcoin, (ii)
customer funds were not protected as the principal had said, and
(iii) after receiving the customers' money, the principal sent
the money to third parties without first receiving any bitcoin in
return, did not deliver bitcoin to the customers, and then lied to
the customers about the location of the bitcoin, the reasons the
transaction was not completed, and the status of the customers'
money.
