- The US District Court has fined Control-Finance LTD CEO Benjamin Reynolds for operating a Bitcoin scam.
- The Court has ordered Reynolds to pay a whopping $571 million for operating fraudulent activity.
The US District Court has fined Control-Finance LTD CEO, Benjamin Reynolds, over $571 million. Reynolds operated a Bitcoin scam in which he got over 22,190.542 worth of bitcoin, according to court reports.
Based on a press release, Reynolds got the said amount of bitcoin from not less than 1,000 customers.
However, talking about the fine, the Court has ordered Reynolds to pay $571 million for operating such fraudulent activity. Of note, Reynolds will pay the money not for the court’s benefit but as a payback to the victims.
Under the Reynolds Bitcoin scam, he promised to give higher profits to anyone who invested in BTC via his custody services. In addition, Reynolds told investors that their money would only be accessed by trading managers.
Continuously, Reynolds also promised that he would hedge funds against BTC price fluctuations.
Moreover, Reynolds even pledged to give rewards and bonuses to anyone who referred their friends to his platform.
The CFTC explained,
The defendants marketed and concealed their fraud through an elaborated pyramid scheme they called the Control-Finance “Affiliate Program.” Through the Affiliate Program, the defendants fraudulently promised to pay, in the form of Bitcoin, escalating referral profits, rewards, and bonuses to “Affiliates,” or persons who referred new customers to Defendants.
However, all Reynolds promises were false. Instead, he sent investors money from one wallet to another making it difficult to trace. Moreover, investors requested for their refunds once they noticed what Reynolds was doing. At this point, unfortunately, the investors had already fallen victim to Reynold’s BTC Ponzi scheme.