Authorities in the US and South Korea are investigating a new large crypto scam. This is the UK based Control Finance Ltd company, founded by Benjamin Reynolds. He is accused of having accumulated almost 23,000 BTC from the scam of over 1000 investors.
In the US, the CFTC is responsible for the investigation, and in South Korea by the Ulsan District Prosecutor’s Office.
Control-Finance Ltd Company has exploited the public enthusiasm for Bitcoin in 2016-2017 and have accumulated 22,858 BTC. At the time, they were worth at least $ 147 million. This was a complex pyramid scheme to attract customers through an “Affiliate Program”.
Large crypto scam difficult to solve
They used a website and accounts on popular social networking sites to convince customers to buy and transfer Bitcoin to them. Control-Finance produced and posted weekly false “activity reports” claiming significant profits were made. In fact, no investments were made, according to the CFTC investigation.
With the launch of the investigation, the company suspended its activity on September 10, 2017. The site was closed and all payments to customers were suspended.
Even though the CFTC has initiated a lawsuit against Control-Finance Ltd, US and South Korean authorities have failed to find Benjamin Reynolds. He was registered with a fake Manchester address and disappeared with the money.
For this reason, the CFTC was forced to postpone the next trial hearing against Reynolds and his pyramid scheme.
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