Court Orders $4M Fine For Investment Fraud Involving ATM Coin

Must Read

Bitcoin Bull Rally Incoming? Market Price Keeping Below the Production Cost Ahead of Halving

Bitcoin is staying above its crucial level $9,000 for sometime now while experiencing some...

Trader shares the “Very Reason All Investors Should Hold some Bitcoin”

In 2020, the price of the leading asset had one of its worst one-day drops...

Bitcoin Sees an Influx of Retail Interest with Investors Doubling Down on HODLing

After tumbling down to below $6,500 yet again, Bitcoin went back above $7,000 in...
- Advertisement -BTCClicks.com Banner
Earn Free Bitcoin

A New York court has ordered defendants to pay $4.25 million in penalties for investment fraud involving the cryptocurrency ATM Coin.

Case first brought by the CFTC in April 2018

On Nov. 1, the United States Commodity Futures Trading Commission (CFTCannounced that the U.S. District Court for the Eastern District of New York has entered an order against several entities for committing fraud and misappropriating client funds.

The defendants include Blake Harrison Kantor and Nathan Mullins as well as four related corporate entities: United Kingdom-based Blue Bit Banc, Turks and Caicos-located Blue Bit Analytics and two firms from New York — Mercury Cove and G. Thomas Client Services.

Binary option scam involving ATM Coin cryptocurrency

Brought in connection with the CFTC’s Division of Enforcement’s Virtual Currency Task Force, the case was initially filed by the CFTC on April 16, 2018. At the time, the regulator charged the defendants with fraud in connection with a binary options scam involving a virtual currency dubbed ATM Coin.

While the court eventually charged that the defendants committed fraud and misappropriated client funds through investment in binary options, the ATM Coin cryptocurrency was reportedly used by the defendants as part of the scam scheme. According to the CFTC, the defendants converted Blue Bit Banc investments into ATM Coin — a “worthless” cryptocurrency that Kantor had misleadingly told investors was worth significant sums of money.

According to the CFTC’s Fraud Advisory on binary options, there are several binary options that are listed and registered on exchanges or traded on a designated contract market that are overseen by the CFTC and the Securities and Exchange Commission (SEC). However, it states that a large number of them operate on internet-based platforms that are not always compliant with U.S. financial regulations. 

In late September, decentralized data governance startup Band Protocol released its Bitcoin (BTC) and Ether (ETH) binary options app running on the Ethereum’s blockchain. Users of the BitSwing platform can bet on Bitcoin’s price movements, while a correct guess allows them to double their staked Ether.

- Advertisement -
- Advertisement -

Latest News

Wyoming Amends Insurance Code to Allow Insurance Companies to Invest in Bitcoin & other Cryptos

In the first provision of its kind, Wyoming is allowing the domestic insurers to invest...
- Advertisement -Earn Free Bitcoin

Its’ Finally Here A 100% Local Non-Custodial P2P Cryptocurrency Marketplace.

Finfreeotc is soon launching a one of a kind peer to peer cryptocurrency market place. Their marketplace is 100% non-custodial,...

WorldMarkets continues with the success of its trading artificial intelligence

Today we live in the information age, and access to information is unlimited. And that produces the paradox of misinformation. That's why...

MyTvchain.com Records Growth for The First Blockchain ​​Web Tv Platform Dedicated to Sport Clubs And Athletes

Sophia Antipolis (France) and Singapore: The first web TV platform dedicated to sports clubs and athletes opened in...

Crypto-Broker Instacoins Receives Operating License in Estonia

Instacoins Estonia OÜ, a cryptocurrency brokerage, is pleased to announce it has received an operating license from the Estonian Financial Intelligence Unit (FIU). The...