DayOfCrypto
  • Home
No Result
View All Result
DayOfCrypto
No Result
View All Result
DayOfCrypto
Home Other
bitcoin-ponzi-scheme-take-down-prompts-cftc-warning

Bitcoin Ponzi Scheme Take Down Prompts CFTC Warning

by Admin
October 19, 2019
in Other
289 3
0
Share on FacebookShare on Twitter

The CFTC has reissued previous advice to help the public evaluate the legitimacy of Bitcoin and cryptocurrency investment opportunities. The warning comes in the wake of a takedown of a company suspected of defrauding $11 million from investors.

The Commodities Futures Trading Commission (CFTC) has charged the Nevada-based firm, Circle Society, Corp. and its owner, David Gilbert Saffron, with fraudulent solicitation, misappropriation, and registration violations. A civil enforcement action, filed on Wednesday, claims that the company solicited funds from at least 14 investors on the grounds that they would see 300 percent returns on their investment in just weeks.

The firm would apparently use investor funds to trade cryptocurrency and foreign exchange pairs. Company correspondence stressed Saffron’s skill as a binary options trader in an effort to convince investors to part with their cash.

The CFTC recently brought an enforcement action against a #binaryoptions Ponzi scheme that took in $11 million in #Bitcoin and dollars to trade binary options on foreign currencies (#forex). Learn how these schemes work and what to watch out for: https://t.co/tCVinSi26y

— CFTC (@CFTC) October 17, 2019

The filing states that Saffron did not trade investor funds. Bitcoin deposits were reportedly sent to the defendant’s personal wallet.

Circle Society operated from late 2017 until its recent takedown. Given that the company appears to have paid some early investors with funds deposited by newer members, the CFTC states that the company operated “in the manner of a Ponzi scheme.”

The case has prompted the regulator to reissue earlier advice to help investors stay safe. In an article titled “Binary Options Fraud”, it gives various red flags for the public to be aware of, as well as methods of checking out a firm’s legitimacy for oneself.

As part of the recent court filing, the CFTC Chairman Heath P. Tarbert provided comments on the importance of bringing down scams preying on people’s optimism about the future of cryptocurrency. As well as reaffirming the regulator’s commitment to protecting the public, Tarbert added that such scams do a great disservice to the emerging digital asset industry.

Claiming that schemes like Circle Society undermine responsible development in the industry, he stated that the only way for America to lead the new market would be to bring greater integrity to the space.

Recently, the CFTC labeled Ether as a commodity, as BeInCrypto has previously reported.

What do you think about Tarbert’s seemingly pro-cryptocurrency comments? Comment below.


Images are courtesy of Twitter, Shutterstock.

The post Bitcoin Ponzi Scheme Take Down Prompts CFTC Warning appeared first on BeInCrypto.

Admin

About Us

We bring you the best Premium WordPress Themes that perfect for news, magazine, personal blog, etc. Check our landing page for details.

Follow Us

Popular Tag

Adoption Banks Binance Binance Coin Bitcoin Bitcoin Cash Bitcoin Price Bitcoin Regulation Bitcoin SV Blockchain Central Bank China Coinbase Crimes Cryptocurrencies Cryptocurrency Exchange EOS Ethereum Ethereum Price Facebook Germany Government Investments Japan Law Libra Litecoin Markets Market Update Mining Payments Regulation Ripple SEC Security South Korea Stablecoin Stellar Switzerland Tokens Tradings Transactions USA Wallet XRP

Recent News

Poloniex Review – Buy and sell cryptocurrencies, Bitcoin, Registration, Safety, Reference

Poloniex Review – Buy and sell cryptocurrencies, Bitcoin, Registration, Safety, Reference

November 8, 2020
Bitstamp Review – Buy and sell Bitcoin and cryptocurrencies, Registration, Safety, Reference

Bitstamp Review – Buy and sell Bitcoin and cryptocurrencies, Registration, Safety, Reference

November 8, 2020
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • Home

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Go to mobile version
Skip to toolbar
  • About WordPress
    • WordPress.org
    • Documentation
    • Support
    • Feedback
  • Log In
  • AMP
    • View AMP version