CFTC Sues Alleged Ponzi Scammer for Stealing $534K

CFTC Sues Alleged Ponzi Scammer for Stealing $534K

The U.S. Commodity Futures Trade Commission (CFTC) he taken a legal action against an alleged Ponzi scammer over charges that he and his firm received half a million dollars for investment in Bitcoin. However, he instead used the money in personal purposes.

Breonna Clark (also known as Eliot Clark), and his company Venture Capital Investments and The Life Group have reportedly secured $534,829 from 72 persons, to invest in Bitcoin (BTC). However, they used $400,000 in personal purposes, such as buying a BMW.

Accordingly, the commission sued the alleged Ponzi scammer for misconduct, fraud by using a misleading device, as well as failure to register as a commodity pool operator and a commodity trading counselor.

Moreover, Clark created “fake account statements” to deceive buyers, and used some of the funds in paying off other investors.

The complaint said:

“At various times during the Relevant Period, several pool participants requested to withdraw funds from their accounts. In some instances, Clark failed to respond at all to a pool participant’s request. In other instances, Clark responded with false excuses. Among the false excuses Clark made to pool participants why Defendants could not comply was that the CFTC was conducting an ‘audit.'”

However, the suspected did not return any of the funds raised through the alleged scheme.

Crypto Fraud rises 533%

Cryptolydian earlier reported that CipherTrace, a cryptocurrency intelligence firm, revealed a 533 percent increase in the value of cryptocurrency fraud, which include Ponzi style pyramid schemes, and exit scams.

Accordingly, this increase means that the traditional banking system is potentially exposed to danger under the new Financial Action Task Force (FATF) regulations as misappropriated funds are laundered.

In order to identify and report suspicious transactions, track the availability of information, take freezing measures and prohibit transactions with designated individuals and entities. The Travel Rule stipulates virtual currency businesses to obtain and transmit appropriate originator and beneficiary information.

0 0 vote
Article Rating
Share this page
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.