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U.S. Government Granted The Right To Intervene In $7 Million Fraud Case
Summary: The New York Southern District Court has ruled against John Barry Thompson, allowing the U.S. government to intervene in Thompson’s civil case. Thompson is facing charges for knowingly or recklessly making false representations to customers in connection with the purported purchase of Bitcoins worth over $7 million. The U.S. government in this case represented by ...
The New York Southern District Court has ruled against John Barry Thompson, allowing the U.S. government to intervene in Thompson’s civil case.
Thompson is facing charges for knowingly or recklessly making false representations to customers in connection with the purported purchase of Bitcoins worth over $7 million. The U.S. government in this case represented by the Commodity Futures Trading Commission (CFTC) now has the right to intervene in the matter and stay the matter, until its conclusion.
The CFTC claims that after receiving clients’ funds, Thompson, the head of a Bitcoin escrow service, sent almost all of the user money received to third parties. The alleged Bitcoin was never delivered to customers while their funds also remained without the safeguard they were promised.
The CFTC is seeking restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against all further violations of the Commodity Exchange Act and the CFTC’s regulations.
By Ramsey Baker
Tags: CFTC,Cryptocurrency,John Barry Thompson
Link: U.S. Government Granted The Right To Intervene In $7 Million Fraud Case [Copy]
