After a series of legal proceedings and several investigations, the District Court of the New York Southern region of the United States has aligned with the request of CFTC to make the mastermind of the BTC Scam that worth millions of dollars repay.
Based on an official news release from the CFTC, Benjamin Reynolds, the founder of Control Finance LTD, has been ordered by the US court sitting in the Southern District of New York to recompense over $572 million that was gathered from the BTC scam staged by the company.
Another BTC Scam worth Millions of Dollars staged in 2017
Based on statements from CFTC, the fraudulent activities ran by Reynolds ran from around May 1 to about October 31, 2017. Like other frauds, the business made promises like a steady and sure profit for those that invested their BTC in their operations.
The company, Control-Finance, made a promise to the users that funds invested would be managed actively through diverse market operations. Another promise is that their funds would be hedged from market fluctuations as soon as their BTC is in the wallet of the company.
The business owned by Benjamin Reynolds, however, was grown by Ponzi scheme techniques, and in a matter of time, it boomerangs at an exponential rate.
It was these promises that attracted new users to the business, plus the referral rewards that are allocated to those that brought new users through a customized link to the business.
CFTC gave full details of the scam, saying that Reynolds concealed and marketed their fraudulent activities in a comprehensive multi-level marketing scheme called the “Affiliate Program of Control Finance. Through this program, Reynolds and his company made promises to their users that they would get BTC as a reward for their partnership from the affiliates’ bonuses, referral rewards and all.”
Brief details about Benjamin Reynolds
From the scam, Reynolds got about 22,190.542 BTC, and at that time, the value was $143 million. This was gathered from about 1000 customers globally. CFTC has, however, named the 169 people residents in the United States who are the victims of the scam.
Currently, no one knows Mr. Reynolds’ whereabouts, but there is a different postulation as to where he might be. Furthermore, some people concluded that the name Reynolds is fictitious as the face known belongs to a popular actor, while some believe that he is a poker player.