Benjamin Reynolds, the manager of a UK-based cryptocurrency investment company called Control-Finance, will pay a $ 570 million penalty according to the decision taken for him. The name that attracts its customers with a high income valley has not been reached for years.
In the US, the Commodity Futures Contracts Trading Commission (CFTC) is seeking a $ 572 million penalty for fraud against the Bitcoin trading platform Control-Finance.
According to the information given by FinanceFeeds; The CFTC notified the New York Southern District Court the decision on Thursday. In absentia, Benjamin Reynolds, the owner and sole director of Control-Finance, will have to pay a fine of $ 429 million and a compensation of $ 143 million for failing to participate and respond to the CFTC’s investigation initiated in June 2019.
Reynolds is accused of embezzling at least 22,858 Bitcoins (worth at least $ 147 million at the time and currently more than $ 270 million) from more than a thousand customers through a pyramid organization called the Control-Finance “Member Program”.
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Reynolds collected Bitcoins from his clients in 2017 with the promise to give them a 45 percent monthly trade return, but in reality he never traded on behalf of his clients. In the statement of the CFTC, it was stated that “Reynolds did not make any trades on behalf of his clients, did not make a profit for them, and embezzled Bitcoins”.
As a result of the ruling in absentia on Thursday, Reynolds will also be permanently banned from trading and transactions in Bitcoin.