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CFTC Accuses Control-Finance of Organizing 147 Million Dollar Cryptopyramid

The Commodity Futures Trading Commission (CFTC) has filed a lawsuit accusing Control-Finance of fraud valued at 22858 BTC ($147 million).

It is reported that CFTC addressed the U.S. District Court for the Southern District of New York with a complaint against the British Bitcoin trading and investment company, and its founder, Benjamin Reynolds.

The claimant states that the malefactors suggested investors buy bitcoins and provide them as a deposit to the company which, in turn, would use it in order to gain super-profit. The professional traders guaranteed the investors high present income. Bitcoins attracted from new participants were paid to the clients that joined earlier.

The regulator believes that more than a thousand investors who were enthusiastic about the idea to fund in bitcoin had gone victims for the period from May 1 to October 31, 2017. The site of Control-Finance ceased to work, the payments stopped, as well as advertising on Facebook, YouTube, and Twitter.

CFTC insists on the civil monetary penalties, restitution, rescission, disgorgement of ill-gotten gains, trading and registration bans, and permanent injunctions against further violations of the federal commodity laws, as charged.

We recall that Commodity Futures Trading Commission (CFTC) won the case against the cryptocompany Gelfman Blueprint which organized a Ponzi Scheme.