CFTC Fines Owner of Escrow Firm $7 Million over Bitcoin Scam
- The enforcement action is the latest development in the case against Jon Barry Thompson, which has been running since 2018.
An Easton man was ordered to pay $7.4 million in restitution to resolve civil charges brought by the US Commodities Futures Trading Commission for stealing funds from two companies by lying about Bitcoin transactions.
The enforcement action is the latest development in the case against Jon Barry Thompson, which has been running since 2018. The 49-year-old Pennsylvanian was indicted in 2019 for defrauding two customers buying Bitcoins through his firm Volantis, which operated a cryptocurrency escrow company called Volantis Escrow Platform LLC and a related company, Volantis Market Making.
A similar story had played out in both instances. Specifically, Volantis received $7 million to buy bitcoins on behalf of two clients, which was then sent to a third party before receiving the purchased bitcoins. Thompson lied to the companies, saying “cash is with me, coin is with me,” and further claimed “there is no risk of default” since Volantis controlled “both sides of the transaction.”
In fact, Thompson sent the funds to another escrow service provider who never purchased the Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term promised or returned the funds, which were apparently lost in transaction.
“The order also finds that after Thompson took the customers’ money and failed to provide any Bitcoin, he then lied to the customers about the location of the Bitcoin, the reasons the transaction was not completed, and the status of the customers’ money,” the CFTC said in a statement.
Symphony FS, an Irish firm thought to have been one of the victims of the fraud, alleges that Thompson never had the promised Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, which were never delivered to the customers, and the money was not safeguarded as promised.
Following investigations, Thompson was indicted in 2019 by a grand jury in the Southern District of New York on two charges of commodity fraud followed by two counts of wire fraud, which means that he could face up to 60 years in prison on conviction.
However, yesterday, the court accepted Thompson’s plea of guilty to one count of commodities fraud, which carries up to a 10-year prison sentence. He will be sentenced on January 7, 2021
An Easton man was ordered to pay $7.4 million in restitution to resolve civil charges brought by the US Commodities Futures Trading Commission for stealing funds from two companies by lying about Bitcoin transactions.
The enforcement action is the latest development in the case against Jon Barry Thompson, which has been running since 2018. The 49-year-old Pennsylvanian was indicted in 2019 for defrauding two customers buying Bitcoins through his firm Volantis, which operated a cryptocurrency escrow company called Volantis Escrow Platform LLC and a related company, Volantis Market Making.
A similar story had played out in both instances. Specifically, Volantis received $7 million to buy bitcoins on behalf of two clients, which was then sent to a third party before receiving the purchased bitcoins. Thompson lied to the companies, saying “cash is with me, coin is with me,” and further claimed “there is no risk of default” since Volantis controlled “both sides of the transaction.”
In fact, Thompson sent the funds to another escrow service provider who never purchased the Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term promised or returned the funds, which were apparently lost in transaction.
“The order also finds that after Thompson took the customers’ money and failed to provide any Bitcoin, he then lied to the customers about the location of the Bitcoin, the reasons the transaction was not completed, and the status of the customers’ money,” the CFTC said in a statement.
Symphony FS, an Irish firm thought to have been one of the victims of the fraud, alleges that Thompson never had the promised Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, which were never delivered to the customers, and the money was not safeguarded as promised.
Following investigations, Thompson was indicted in 2019 by a grand jury in the Southern District of New York on two charges of commodity fraud followed by two counts of wire fraud, which means that he could face up to 60 years in prison on conviction.
However, yesterday, the court accepted Thompson’s plea of guilty to one count of commodities fraud, which carries up to a 10-year prison sentence. He will be sentenced on January 7, 2021