The United States Commodity Futures Trading Commission, CFTC (Commodity Futures Trading Commission) is reportedly unable to find Benjamin Reynolds, who is believed to be the operator of a crypto-currency ponzi scheme worth more than $ 147 million.
Financial news provider, FinanceFeeds, reports that CFTC as a regulator submits a request or motion to the South New York District Court to process Reynolds and its service called Control-Finance.
In a memorandum sent with the request, CFTC explained that they were trying to service Reynolds, but noted that the address listed as the service address in the documents related to Control-Finance actually did not exist. The regulator also tried to send email to Reynolds, but received an error message indicating that the only email address associated with it could not be reached.
Control-Finance is a crypto-currency ponzi scheme allegedly operated by Reynolds whose regulation is served by CFTC, Control-Finance is judged to fraudulently obtain and abuse at least 22,858.82 BTC with an estimated value of more than $ 147 million.
According to CFTC, the number of victims of fraud is more than 1,000 investors. Reynolds managed to deceive its victims by claiming that they would receive a profit of 1.5% every day or as much as 45% per month on their investment. To ensure they feel safe, it is claimed to use a risk diversification method that protects the user’s bitcoin.
CFTC found that Control-Finance did not use funds to carry out a single trade, and instead only provided fake balances to users in their accounts, and issued false reports to trick them into believing they were profitable.
Over the years, crypto currency investors have found a large number of ponzi schemes to emerge, with one of the most famous being BitConnect. Last year, the Chinese Ponzi scheme called PlusToken added selling pressure on BTC prices because it “dumped” 70,000 BTC on the market.