US Court Fines $900K to Crypto and Forex Ponzi Scheme Operator
- The perpetrators might not have enough funds or assets for total recovery.
A United States district court has sentenced against a digital currency and Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this TermPonzi scheme that solicited and misappropriated its clients’ funds.
Both Venture Capital Investments LLC (VCI) and its principal and manager, Breonna Clark, otherwise known as Eliot Clark or Alexander Pak, were held accountable for running the fraudulent scheme.
The charges against them were brought by the US Commodity Futures Trading Commission (CFTC), with the assistance of multiple foreign regulators, including the ones in Bulgaria, the St. Vincent and the Grenadines, Seychelles, the United Kingdom, and New Zealand.
A Typical Scam
Wednesday’s announcement detailed that the perpetrators fraudulently solicited funds from over 72 clients. They promised high returns by investing the funds in commodity pools that purportedly trade in forex and 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.
Similar to most of such schemes, they promoted their scheme on social media. They advertised that the funds will be traded by a 'master team of traders' and promised consistent high returns.
However, the fund operators misappropriated the funds for personal use. They purchased many high-value goods, including a luxury automobile.
The perpetrators solicited and misappropriated a total of $450,302 in customer funds.
The court ordered the perpetrators to pay $450,302 in restitution to defrauded clients, along with a civil penalty of $450,302. They also need to bear the costs of the CFTC investigation.
Additionally, the defendants are now banned from registering with the CFTC and trading in any CFTC-regulated markets.
Despite the court order, the CFTC cautioned the victims that the scheme operators might not have enough funds or assets for the recovery of lost money.
A United States district court has sentenced against a digital currency and Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this TermPonzi scheme that solicited and misappropriated its clients’ funds.
Both Venture Capital Investments LLC (VCI) and its principal and manager, Breonna Clark, otherwise known as Eliot Clark or Alexander Pak, were held accountable for running the fraudulent scheme.
The charges against them were brought by the US Commodity Futures Trading Commission (CFTC), with the assistance of multiple foreign regulators, including the ones in Bulgaria, the St. Vincent and the Grenadines, Seychelles, the United Kingdom, and New Zealand.
A Typical Scam
Wednesday’s announcement detailed that the perpetrators fraudulently solicited funds from over 72 clients. They promised high returns by investing the funds in commodity pools that purportedly trade in forex and 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.
Similar to most of such schemes, they promoted their scheme on social media. They advertised that the funds will be traded by a 'master team of traders' and promised consistent high returns.
However, the fund operators misappropriated the funds for personal use. They purchased many high-value goods, including a luxury automobile.
The perpetrators solicited and misappropriated a total of $450,302 in customer funds.
The court ordered the perpetrators to pay $450,302 in restitution to defrauded clients, along with a civil penalty of $450,302. They also need to bear the costs of the CFTC investigation.
Additionally, the defendants are now banned from registering with the CFTC and trading in any CFTC-regulated markets.
Despite the court order, the CFTC cautioned the victims that the scheme operators might not have enough funds or assets for the recovery of lost money.