Bitcoin Store Operator and Alleged Scammer Does Not Show Up for Trial

Thursday, 20/07/2017 | 12:38 GMT by Avi Mizrahi
  • Renwick Haddow allegedly used a boiler room to cold call potential investors and sell securities in Bitcoin Store Inc.
Bitcoin Store Operator and Alleged Scammer Does Not Show Up for Trial
Finance Magnates

A few weeks ago the US Securities and Exchange Commission (SEC) filed fraud charges against Renwick Haddow, a British citizen living in New York. On Wednesday the alleged Bitcoin Store scam operator was supposed to appear before the court for the first time, but it looks like he chose to remain in hiding.

Learn how to buy Bitcoin and Ethereum safely with our simple guide!

U.S. District Judge Lorna G. Schofield denied the SEC's pending request for a preliminary injunction regarding an asset freeze on Haddow and his companies, according to Law360. "I'm not going to do that ex parte," she said. "The temporary restraining order will remain in effect."

Background

Haddow allegedly used sales representatives to cold call potential investors and sell securities in Bitcoin Store Inc. and Bar Works Inc. According to the SEC’s complaint, materials presented to investors in both companies touted the backgrounds of senior executives who do not appear to exist. The materials also misrepresented other key facts about both companies’ operations.

Haddow allegedly diverted more than 80% of the funds raised by the broker-dealer for the Bitcoin Store, and sent more than $4 million from the Bar Works bank accounts to one or more accounts in Mauritius and $1 million to one or more accounts in Morocco.

The SEC alleges that materials provided to Bitcoin Store investors claimed it was “an easy-to-use and secure way of holding and trading Bitcoin” and had generated several million dollars in gross sales. In fact, the SEC alleges that Bitcoin Store has never had any operations nor generated the gross sales that it claimed.

A few weeks ago the US Securities and Exchange Commission (SEC) filed fraud charges against Renwick Haddow, a British citizen living in New York. On Wednesday the alleged Bitcoin Store scam operator was supposed to appear before the court for the first time, but it looks like he chose to remain in hiding.

Learn how to buy Bitcoin and Ethereum safely with our simple guide!

U.S. District Judge Lorna G. Schofield denied the SEC's pending request for a preliminary injunction regarding an asset freeze on Haddow and his companies, according to Law360. "I'm not going to do that ex parte," she said. "The temporary restraining order will remain in effect."

Background

Haddow allegedly used sales representatives to cold call potential investors and sell securities in Bitcoin Store Inc. and Bar Works Inc. According to the SEC’s complaint, materials presented to investors in both companies touted the backgrounds of senior executives who do not appear to exist. The materials also misrepresented other key facts about both companies’ operations.

Haddow allegedly diverted more than 80% of the funds raised by the broker-dealer for the Bitcoin Store, and sent more than $4 million from the Bar Works bank accounts to one or more accounts in Mauritius and $1 million to one or more accounts in Morocco.

The SEC alleges that materials provided to Bitcoin Store investors claimed it was “an easy-to-use and secure way of holding and trading Bitcoin” and had generated several million dollars in gross sales. In fact, the SEC alleges that Bitcoin Store has never had any operations nor generated the gross sales that it claimed.

About the Author: Avi Mizrahi
Avi Mizrahi
  • 2727 Articles
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About the Author: Avi Mizrahi
Azi Mizrahi, expert in fintech trends and global markets, enriches readers with deep insights.
  • 2727 Articles
  • 10 Followers

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