AtoZ Markets – Regulators in the United States, such as the Securities and Exchange Commission and the Commodity and Futures Trading Commission, are busy with a new generation of scammers. They are seeking to free investors from their funds. In the past two months alone, the CFTC has cracked down on fraudulent binary options schemes. Those are worth more than $ 15 million in the United States.
Binary Options Crypto Scam
Already a high-risk investment strategy, binary options platforms are often based online. And they are difficult to regulate. Unfortunately, navigating the binary cryptocurrency options has proven more natural to say. That is more than to do for many inexperienced investors.
ATM's Crypto Coin Scam
Binary options trading is relatively new in the cryptography industry. But scammers find themselves quickly in the dock, facing hefty fines. On November 1, the CFTC announced that a New York court had sentenced defendants to pay $ 4.25 million in penalties. It is for an investment fraud scam involving an ATM's crypto coin. The Eastern District Court in New York has issued an order against several entities for fraud and embezzlement of customers.
The defendants are physical and legal entities around the world, including Blake Harrison Kantor and Nathan Mullins, as well as four corporate entities. Those are Blue Bit Banc, based in Turks and Caicos, UK-based Blue Bit Analytics. Also, the defendants are two New York-based companies Mercury Cove and G. Thomas Client Services.
The sentence was only recently served. But the CFTC's Virtual Currency Task Force first filed the case on April 16, 2018. That was accusing the defendants of fraud. According to the CFTC, the defendants embezzled funds from customers obtained through binary options. They were converting Blue Bit Bank's investments into pieces of ATMs. And they told the investors that they were worth a substantial amount of money.
Read More: How to make a Bitcoin Paper Wallet
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The Circle Society Scam
The $ 4.25 million penalties imposed on binary option scammers in November. However, it was CFTC's second successful strike in the past two months. On October 16, the regulator filed a civil enforcement action against the Circle Society.
The CFTC announced that it would charge the Nevada Corporation and its owner, David Gilbert Saffron. The charge was for fraudulent solicitation, embezzlement, and violation of registration about an $11 million binary options scheme.
However, going back to December 2017, the CFTC claims that the Saffron and Circle Society has fraudulently solicited at least $ 11 million worth of Bitcoin and fiat money to exchange in binary exchange options on foreign currencies and cryptographic currency pairs.
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