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ARTICLE · 02 JULY 2019

CFTC Sues Unregistered Trading Company In Bitcoin Ponzi Scheme

Hogan Lovells Cadwalader
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The CFTC filed a civil enforcement action against an unregistered UK bitcoin trading and investment company for misappropriating $147 million in bitcoin.

United StatesTechnology
Hogan Lovells Cadwalader
Hogan Lovells Cadwalader
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The CFTC filed a civil enforcement action against an unregistered UK bitcoin trading and investment company for misappropriating $147 million in bitcoin.

According to the Complaint, Control-Finance Limited ("Control-Finance") and its principal, Benjamin Reynolds, established a complex pyramid scheme known as the "Affiliate Program." Customers were solicited to buy bitcoin with cash and deposit it with Control-Finance under the promise that they would see up to 45 percent in monthly trading profits and would be protected from bitcoin-made risks. The defendants created "Trade Reports," published on the company website, which displayed falsified statements of bitcoin transactions and profits.

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