The official complaint released on the CFTC website claims that from around October 2019 up until the past few months, the accused utilised a number of social media platforms and websites in order to falsely market their forex trading pool as an alternative to a savings account which provided a larger yield with minimal risk.…
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The CFTC now claims that these worst-case scenarios were in fact not based on historical scenarios at all and that LJM’s legitimate internal historical scenarios displayed losses far greater than 40% for each strategy. The complaint goes on to allege that around the tail-end of 2017 through to February 2018, LJM dramatically deviated from its…
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The civil monetary fine that Spence will have to pay amounts to $33 million according to the latest CFTC order, with restitution penalties totalling just over $11 million to be paid to Coin Signal customers who fell victim to the fraudulent scheme. The initial complaint stated that Spence eventually conceded to Ponzi victims that he…
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The CFTC found that since December 2017, Saffron has fraudulently solicited around $15,815,967 worth of Bitcoin and U.S. dollars from 179 investors to trade off-exchange binary options on forex and cryptocurrency pairs, among other things. Saffron created Circle Society and used it to carry out his fraudulent activity. The CFTC has stated that Saffron and…
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The US watchdog also found that Butler would gather between $500 and $5,000 of customer deposits into a single trading account at Nadex. As the trader for NCI, he would use that money to trade binary options on the customers’ behalf. Butler would leave clients to think that each customer payment would be placed into…
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Olson has admitted to being affiliated with Blue Bit Banc and similar bodies from around April 2014 to March 2018. He would sell binary options to Blue Bit customers during this period by utilising aliases and watching over sales staff within Blue Bit’s Manhattan-based office. Olson also admitted to misrepresenting Blue Bit trade profitability, manipulating…
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The CFTC said: While Reynolds represented that he would return all bitcoin deposits to customers of Control-Finance by late October 2017, he never did and instead retained the deposits for his own personal use. Customers lost most or all of their bitcoin deposits as a result of the scheme. The watchdog service found that Control-Finance…
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Reporting firms, including Crypto Facilities Ltd and CoinMarketCap OpCo, LLC, gained access to Coinbase’s transactional information through its Application Programming Interface. At the same time, the NYSE Bitcoin Index received it directly in transmissions from Coinbase. The order found that this may have resulted in a misleading, inaccurate, or false perceived volume and liquidity level…
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He allegedly engaged in various efforts to conceal his misconduct – he misrepresenting his trading profitability and the amount of assets he had under management, misappropriated customer funds, and issuing false performance statements. The complaint stated that Spence eventually admitted to his customers that he had engaged in “lies and deceit.” Acting Director of Enforcement…
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The consent order finds that between April 2017 and February 2019, Pyatt accepted $276,850 from pool participants to trade commodity futures and forex. The US watchdog also discovered that Pyatt misappropriated most of pool participants’ funds for business expenses and personal use, and to make Ponzi-like payments to other pool participants, while using only a…
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