Founder of crypto firm Control Finance fined $572 million
A New York court charged Control-Finance, its head, Benjamin Reynolds, with more than $500 million.
Reynolds was notified of the lawsuit against him two years ago. CFTC officials said that in the spring of 2017, the entrepreneur took over the sum of 22,190 BTC, using the website, advertising on social networks and email. In 2017, this was equivalent to $141 million.
Reynolds told potential clients that, in collaboration with a team of professional cryptocurrency traders working for him, it is possible to receive a guaranteed monthly profit of 45% from deposits. However, as the agency later found out, the entrepreneur did not make any transactions on behalf of his clients. Moreover, it is not a fact that at least one of the employees mentioned by him worked for him.
When the scheme failed, the businessman promised to return the funds invested by his clients by autumn 2017 in full. But that didn't happen. The CFTC claim that instead of refunding the amount, he simply left it in his accounts. By that time, the advertising of his resource in social networks had disappeared, and the website was closed.
But the department's patience finally burst when Reynolds persisted in ignoring subpoenas without being charged. In the summer of 2020, the CFTC issued a standard decision in the case.
Now the businessman will be obliged to pay $ $429 million fine and $143 million in restitution. In addition, the court forbade him to continue trading in the markets controlled by the CFTC and to submit a request to the regulator to register companies.