Introduction
The Commodity Futures Trading Commission (CFTC) has issued a default judgment of $54 million against a trader for his involvement in a cryptocurrency fraud scheme. The trader, named Blake Harrison Kantor, was charged with fraud and misappropriation of funds in connection with his operation of a cryptocurrency investment scheme.
According to the CFTC, Kantor and his company, Blue Bit Banc, fraudulently solicited more than $1.5 million from at least 32 investors in connection with the scheme. Kantor allegedly used the funds for personal expenses, such as luxury cars and jewelry, and to pay back earlier investors in a Ponzi-like fashion.
The Allegations
The CFTC alleges that Kantor and Blue Bit Banc made false promises to investors, claiming that their investments would be used to trade binary options on foreign currencies and cryptocurrency pairs. Kantor promised investors high returns on their investments, but instead used the funds for personal expenses and to pay back earlier investors.
The CFTC also alleges that Kantor and Blue Bit Banc manipulated the trading software used to execute trades on behalf of investors, resulting in losses for investors and gains for Kantor and his associates.
The Judgment
The CFTC?s default judgment orders Kantor and Blue Bit Banc to pay more than $43 million in restitution to defrauded investors and a civil monetary penalty of $10 million. In addition, Kantor is permanently barred from trading and registering with the CFTC.
The CFTC notes that this case is part of a larger effort to combat cryptocurrency fraud and protect investors from fraudulent schemes. The agency has recently taken action against several other individuals and companies involved in cryptocurrency fraud schemes.
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Conclusion
The CFTC?s default judgment against Kantor and Blue Bit Banc is a significant victory in the fight against cryptocurrency fraud. The agency?s efforts to protect investors from fraudulent schemes are important in ensuring the long-term viability and growth of the cryptocurrency industry. It is important for investors to be aware of the risks involved in investing in cryptocurrency and to do their due diligence before investing in any investment opportunity.
