CFTC Sues Alleged Crypto Ponzi Scammer for $500Okay Theft

The U.S. Commodity Futures Trading Commission (CFTC) is suing an alleged Ponzi scammer on claims he and his firm raised half one million {dollars} for cryptocurrency investments, which as a substitute went to non-public makes use of.

According to a press launch, Breonna Clark, in any other case generally known as Eliot Clark or Alexander Pak, and his agency Venture Capital Investments Ltd. and The Life Group allegedly raised $534,829 from 72 victims, promising to take a position funds in bitcoin (BTC), altcoins and international foreign money contracts. Instead, some $400,000 in funds went to non-public makes use of, together with the acquisition of a BMW.

The CFTC is charging Clark with fraud by a commodity pool operator and commodity buying and selling adviser, fraud by misleading system, failure to register as a commodity pool operator and failure to register as a commodity buying and selling advisor.

Clark created “false account statements” to mislead traders and used a number of the funds he raised to repay different traders, an connected grievance claims. “A small portion” of the funds had been finally used to commerce on the pool’s behalf.

“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,'” the grievance mentioned (the CFTC didn’t conduct an audit).

Clark didn’t return any of the funds raised by means of the alleged scheme, the grievance mentioned.

The press launch thanked the Financial Supervision Commission of Bulgaria, Financial Markets Authority of New Zealand, Seychelles Financial Services Authority, St. Vincent and the Grenadines Financial Services Authority and the U.Okay. Financial Conduct Authority.

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