British Bitcoin Scammer Evades The CFTC


British citizen Benjamin Reynolds, ex-director of the crypto Ponzi scheme Control-Finance, has evaded the CFTC for six months following initial legal action against him for misappropriating over 22,000 Bitcoins.

January 8, 2020, | AtoZ Markets – The United States Commodity Futures Trading Commission (CFTC) is having trouble locating Benjamin Reynolds, who is allegedly responsible for a cryptocurrency Ponzi scheme worth over $140 million.

On Jan. 6, the CFTC filed a motion with the New York Southern District Court. More precisely, the regulator filed for the service of process on Reynolds by publication on The Daily Telegraph. CFTC extended it for sixty days the time limit by which the service must be effected on him and his firm.

CFTC hunts for a British Bitcoin-Ponzi scammer

In mid-June, the CFTC launched action against the company over an alleged $147 million Bitcoin (BTC) Ponzi. Control-Finance was a multi-level marketing scheme that used the hype of the 2017 crypto markets to defraud over 1,000 customers.

In a memorandum accompanying the motion, the regulator reportedly explains that it attempted to serve Reynolds at the address listed as his “service address” in the incorporation papers of Control Finance, the firm that managed the scheme. When the process server arrived at the address, he discovered that it does not actually exist.

The CFTC also tried to email Reynolds at the only known email address associated with him and his company. However, they got back an error message indicating that the message could not be delivered. The regulator learned from affected investors that the Ulsan District Prosecutors’ Office in South Korea is also investigating the scheme. Nevertheless, they had similarly failed to contact Reynolds.

Cryptocurrency related scams

Scammers have long been using the speculative enthusiasm surrounding cryptocurrencies to lure in and defraud unsuspecting investors. As AtoZMarkets reported, Thailand police arrested 24 Chinese nationals who ran a fraudulent Bitcoin scam.

One particularly famous cryptocurrency-related scam is OneCoin, which was a $4 billion pyramid scheme. The scam was first discovered in May 2015. However, proceedings are still ongoing, and OneCoin’s website shut down only at the beginning of December last year.

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