News

U.S. Government Granted The Right To Intervene In $7 Million Fraud Case

Ramsey Baker

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


Last Update:

Tags: ,,
Link: U.S. Government Granted The Right To Intervene In $7 Million Fraud Case   [Copy]
  • Bitcoin Weekly Analysis: Volume-Price Divergence and High-Level Consolidation Anticipat... 17 hours ago
  • Will Introduction of the Stablecoin Act Trigger a Financial Tsunami? 2 days ago
  • Trump Just Opened the Floodgates: What Happens When $9 Trillion in Retirement Money Hit... 5 days ago
  • US Crypto Stash Shock: Marshals' Low BTC Count Fuels 'Secret Sale' Debate, Ignites Buyb... 6 days ago
  • Mini Altcoin Season Brewing? Old Guard's Rally Signals Potential Shift 8 days ago
  • You need to login to comment.