CFTC Sues Alleged Crypto Ponzi Scammer for $500Ok Theft

CFTC Sues Alleged Crypto Ponzi Scammer for $500Ok Theft

Coinbase
February 14, 2020 by Bitcoin Report
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The U.S. Commodity Futures Buying and selling Fee (CFTC) is suing an alleged Ponzi scammer on claims he and his firm raised half 1,000,000 {dollars} for cryptocurrency investments, which as an alternative went to private makes use of. In accordance to a press launch, Breonna Clark, in any other case referred to as Eliot Clark
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The U.S. Commodity Futures Buying and selling Fee (CFTC) is suing an alleged Ponzi scammer on claims he and his firm raised half 1,000,000 {dollars} for cryptocurrency investments, which as an alternative went to private makes use of.

In accordance to a press launch, Breonna Clark, in any other case referred to as Eliot Clark or Alexander Pak, and his agency Enterprise Capital Investments Ltd. and The Life Group allegedly raised $534,829 from 72 victims, promising to take a position funds in bitcoin (BTC), altcoins and international foreign money contracts. As a substitute, some $400,000 in funds went to private makes use of, together with the acquisition of a BMW.

The CFTC is charging Clark with fraud by a commodity pool operator and commodity buying and selling adviser, fraud by misleading machine, failure to register as a commodity pool operator and failure to register as a commodity buying and selling advisor.

Clark created “false account statements” to mislead buyers and used among the funds he raised to repay different buyers, an hooked up grievance claims. “A small portion” of the funds have been in the end used to commerce on the pool’s behalf.

“At varied instances in the course of the Related Interval, a number of pool individuals requested to withdraw funds from their accounts. In some cases, Clark failed to reply in any respect to a pool participant’s request. In different cases, Clark responded with false excuses. Among the many false excuses Clark made to pool individuals why Defendants couldn’t comply was that the CFTC was conducting an ‘audit,'” the grievance stated (the CFTC didn’t conduct an audit).

Clark didn’t return any of the funds raised by means of the alleged scheme, the grievance stated.

The press launch thanked the Monetary Supervision Fee of Bulgaria, Monetary Markets Authority of New Zealand, Seychelles Monetary Providers Authority, St. Vincent and the Grenadines Monetary Providers Authority and the U.Ok. Monetary Conduct Authority.

Learn the total grievance beneath:

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