CFTC failed to locate Benjamin Reynold, who defrauded customers with Bitcoin worth $ 147 million
The U.S. Commodity Futures Trading Commission (CFTC) is having difficulty locating Benjamin Reynold, principal of the UK-based Control-Finance Ltd. Benjamin Reynold is thought to be responsible for a $ 147,000 Ponzi scheme related to Bitcoin.
According to the reported on Jan. 6, the CFTC has filed a petition with the Southern District Court of New York. More precisely, the regulator applied for Reynold’s processing service and lasted for sixty days the time limit that the service must be performed for him and his company.
Benjamin Reynold’s Ponzi crypto plan
Benjamin Reynold, former director of the Bitcoin Ponzi scheme Control-Finance, evaded regulators for six months after his initial legal action against him for appropriating over 22,000 Bitcoins.
Control-Finance is a multi-level marketing plan, using the hype of the 2017 crypto market to cheat more than 1,000 customers.
The CFTC sought to serve Reynold’s legal papers because of civil monetary sanctions, discrimination of illicit profits, trading bans, and permanent bans against that plan.
However, Reynold was hard to follow, causing the CFTC to ask for another 60 days to chase the elusive British.
Bitcoin scams are worth at least $ 147 million
FinanceFeed reported that the CFTC knew that the Office of Prosecutors of Ulsan District, South Korea, was also investigating the defendants. Specifically, according to the CFTC press release, June 18, 2019. Complaints accuse defendants of exploiting public enthusiasm for Bitcoin by defrauding and appropriating at least 22,858,822 Bitcoin worth cost at least $ 147 million at the time.
Bitcoin trading company Control Finance Limited and its founder Benjamin Reynolds, are said to have misappropriated 22,858.822 bitcoin – worth over £166 million – from more than 1,000 customers through a pyramid scheme. pic.twitter.com/jg9eslTRFi
— London Academy of Trading (@LATlondon) June 21, 2019
Control-Finance has built a complex pyramid to entice customers and hide their fraudulent plans, according to what they call the Financial Control Affiliate Program.
The CFTC also attempted to email Reynold at the only known email address relevant to him and his company but received an error message stating that the message could not be sent.
The regulator explained that it tried to serve Reynold at the address listed as his service address, in the consolidated documents of Control Finance, the company that manages the program. When the process server arrived at the address, he discovered that it did not exist. Control-Finance Establishment Certificate, September 8, 2016, indicates the company’s director’s address is 12 Richmond Street, Manchester, Greater Manchester, England M1 3NB.
As a result, this forced the CFTC to file, on January 3, 2020, a petition with the U.S. District Court for the Southern District of New York, as reported by FinanceFeed, requesting the following:
1. authorize the service of Defendant Benjamin Reynold by publishing in the Daily Telegraph
2.lasts for sixty days by the time the Commission must perform services on Reynold and Control-Finance.
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