In a case filed by the United States Commodity Futures Trading Commission, a court fined another cryptocurrency investment scheme for fraud and misappropriation of client funds.
According to a statement issued by the CFTC on Friday, New York's Eastern District District Court has fined Blake Harrison Kantor and Nathan Mullins $ 4.25 million and four companies, including Blue Bit Banc and Blue Bit. Analytics, Mercury Cove and G. Thomas. Customer Services.
The order included a civil fine of $ 2.5 million against Kantor and the companies, while Mullins was fined $ 300,000. Kantor and Mullins have also been ordered to release "ill-gotten gains" of $ 515,759 and $ 89,574, respectively.
The CFTC first filed a lawsuit against Kantor and his associates in April 2018 for fraud involving binary options – a financial product giving a fixed or non-existent monetary result – and the ATM Coin cryptocurrency. As part of this program, the defendants used internal software to modify the result of the binary options in favor of Blue Bit Banc.
Investor funds were also transferred to "worthless" crypto, which Kantor and Mullins told investors "worth substantial amounts of money."
The CFTC said the defendants had again persuaded customers to deposit money into accounts located in the island nation of St. Kitts and Nevis, increasing the difficulty of tracking such investments.
Although the defendants were ordered to pay damages to the victims, the CFTC indicated that they could not hold assets equivalent to the order indicated.
CFTC image via Shutterstock