- The regulator of CFTC submitted a letter to the New York Southern District Court regarding fraudulent cryptocurrency scheme Control – Finance.
- The CFTC had arranged Control Finance Limited for administering a deceitful Bitcoin trading and investment company.
- The CFTC now set to prepare their motion for default judgment against Reynolds as he couldn’t defend himself.
On Monday, 6th July 2020, the regulator of The United States Commodity Futures Trading Commission (CFTC) submitted a letter to the New York Southern District Court. This letter contained the updates regarding its actions to combat the fraudulent cryptocurrency scheme Control – Finance.
CFTC Charged Control Finance Ltd
The CFTC had arranged Control Finance Limited for administering a deceitful Bitcoin trading and investment company. Its director was Benjamin Reynolds of the United Kingdom. A Civil Enforcement Action announced by the CFTC, filed in the U.S. District Court, New York, on 18th June 2019.
The director, Benjamin Reynolds, and his phony company accused of falsely acquiring 22,858.822 Bitcoin and misappropriating the same. At that time, the Bitcoin amounted to at least $147 million, received by cheating more than 1,000 customers.
Furthermore, the accused party found advocating an elaborate pyramid Ponzi scheme called the ‘Affiliate Program.’ According to this program, the investors promised to pay exponentially increasing profits, rewards, and bonuses in Bitcoin termed as the “Affiliates.”
About six months after the complaint filed, the U.K. born director fled and was difficult to be tracked down. Thus, the CFTC asked the court for more time to locate him.
In April, after the CFTC filed a Notice of Voluntary Dismissal, the court order to stop all the functions of the Control Finance Limited company. However, A Notice of Voluntary Dismissal with regards to Federal Rule of Civil Procedure 41(a)(1)(A)(I) seeks permission for the banishment of a defendant’s company in case he can’t defend himself.
The Major Updates
Coming to the present time, the regulator has attained a Certificate of Default against Reynolds as he failed to plead or otherwise defend his actions. The CFTC now set to prepare their motion for default judgment against Reynolds as he couldn’t defend himself. They intend to file this motion in forty-five days, I.e., on or before 20th August 2020.
The assistance of the British Columbia Securities Commission also appreciated by the CFTC. Therefore, the staff members Daniel Grimm, Jonah McCarthy, Lauren Fulks, and others responsible for this action are also apprehended.