NY court orders crypto scammer to pay $3 million

Judge Orders Trading Firm, CEO to Pay $2.5 Million in Bitcoin Ponzi Case

It eventually resulted in the loss of nearly all customer funds.

WASHINGTON-A federal court ordered a NY trading firm to pay $2.5 million in fines and restitution for orchestrating a Ponzi scheme that defrauded at least 80 customers who thought they were investing in bitcoin. (GBI) and its CEO Nicholas Gelfman to pay over $2.5 million for operating a fraudulent Ponzi scheme, according to an official announcement published October 18. The matter is the first ever anti-fraud proceedings concerning Bitcoin taken up by the Commodity Futures Trading Commission (CFTC).

When the public suspected that the company must have had profit in the recent time, reports were drawn up but with a different conclusion.

With the rise in interest in cryptocurrencies has also come the rise of hedge funds that purportedly invest in those very same cryptocurrencies.

"This case marks yet another victory for the Commission in the virtual currency enforcement arena", said James McDonald, CFTC Director of Enforcement.

"As this string of cases shows, the CFTC is determined to identify bad actors in these virtual currency markets and hold them accountable".

It comes as no surprise to see the Financial Action Task Force in Paris declaring that it will be requiring member countries to license or regulate cryptocurrency exchanges, including providers of currency "wallets".

Canadian inflation slows to 2.2 percent in September
Sales at gasoline stations were down 2.0 percent, while clothing and clothing accessories stores fell 1.2 percent. Air transportation costs, which jumped 16% in July, plunged 17% in September.

SteamVR Motion Smoothing Reduces Lag on Lower-End PCs
Unfortunately, the feature is now only available for HTC Vive owners, and not for Windows Mixed Reality or Oculus Rift headsets. If that happens, "look at the last two frames delivered, estimate the movement and animation, and extrapolate a new frame".

Ranked Halep withdraws from WTA Finals with back injury
Top seed Angelique Kerber will face Naomi Osaka, Sloane Stephens and Kiki Bertens in the round-robin phase of the WTA Finals . Simona was forced to retire against Ons Jabeur at the start of Beijing and she had to withdraw from Moscow as well this week.

All performance reports were false, according to the CFTC, and payouts to GBI customers consisted of other customers' misappropriated funds.

Although legal proceedings started past year, penalties were not finalized until three days ago.

The Orders find that from approximately 2014 through approximately January 2016, Defendants Gelfman and GBI, by and through its officers and agents and employees, operated a Bitcoin Ponzi scheme in which they fraudulently solicited more than $600,000 from at least 80 customers. The company needed only to persuade investors to invest in the fund. After a while, GBI announced a fake hack that they claimed to have caused the loss of all the investors' fund.

The GBI will have to pay more than $550,000 back to their customers, and the Nicholas Gelfman will pay $492,000 himself.

Apart from the monetary penalties, the court also banned permanently GBI and Gelfman from trading.

Yesterday's release concluded with a statement that, "The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable".

Related:

  • India vs West Indies: Statistical highlights of India’s successful chase of 323

    India vs West Indies: Statistical highlights of India’s successful chase of 323

    He had a lean patch in the Test series and pretty innocuous dismissals as well, so it's good to see him get a score on the board. That is something to learn for usWindies captain, Jason Holder said:Pleased with the guys for the batting effort.
    How did Canada do during the first days Cannabis was legalized?

    How did Canada do during the first days Cannabis was legalized?

    He'll meet with a corporate business partner and talk with policymakers in Sydney and Melbourne. Mexico, the Netherlands and Italy are among other nations that have been mulling legalization.
    Nearly  every Comcast Xfinity subscriber now has access to gigabit internet service

    Nearly every Comcast Xfinity subscriber now has access to gigabit internet service

    Comcast told Ars that its Gigabit Pro service is available to about 18 million homes. The speed upgrade isn't free; gigabit internet costs from $90 to $140 per month .
  • Play suspended at weather-affected Valderrama Masters

    Play suspended at weather-affected Valderrama Masters

    The final round of the Valderrama Masters will be completed on Monday after the risk of thunderstorms curtailed Sunday's play. Shane Lowry and Gonzalo Fernandez-Castano are tied for third at four shots back.
    Former Masters champion Willett in early hunt in S. Korea

    Former Masters champion Willett in early hunt in S. Korea

    Last year, the wind blew steadily for three of the four rounds, and can blow enough to affect balls on the greens. Piercy's downhill putt on the par-five ninth, his last hole, gave him his seventh birdie of a bogey-free round.

    Stock's Report of the Day - Barrick Gold Corporation (ABX)

    It represents a security's price that, if achieved, results in a trader recognizing the best possible outcome for his investment. Professional Street analysts that cover specific stocks may have deeper knowledge regarding the current health of the company.
  • Clippers' Boban Marjanovic alters rim with monster dunk

    Clippers' Boban Marjanovic alters rim with monster dunk

    Nuggets: Denver was without Isaiah Thomas (right hip surgery), Jarred Vanderbilt (right foot surgery) and Michael Porter Jr. Following the game, Marjanovic spoke to reporters on Thursday and was asked about the play in which he broke the rim.
    Stanford Study: Juul E-Cigs More Addictive Than Teens Think

    Stanford Study: Juul E-Cigs More Addictive Than Teens Think

    Food and Drug Administration Center for Tobacco Products, and the Child Health Research Institute. Juul users had vaped an average 1.5 days during the past week, and 6.7 days within the past month.

    Don Cheadle crashes Wall Street in Showtime's chaotic Black Monday trailer

    ET/PT. " Black Monday is a scathing comic commentary on the excess of the '80s", President and CEO of Showtime Networks Inc. Black Monday is epxected to arrive in January 2019, until then enjoy the theatrical trailer down below.
  • Jacksonville shooting near Jaguars game wounds 6, 3 critically, police say

    Jacksonville shooting near Jaguars game wounds 6, 3 critically, police say

    He said the auto left the area and authorities were checking surveillance video to try to locate it and find those involved. Anyone with information on the shooting is urged to contact the Jacksonville Sheriff's Office.
    Phoenix Suns Are Undefeated ... After One Game

    Phoenix Suns Are Undefeated ... After One Game

    Ayton, the No. 1 overall pick in the draft, made 8 of 11 shots for 18 points, grabbed 10 rebounds and had six assists. It wasn't until rookie Jalen Brunson of the Mavericks brought the game within 4 points 94-90.
    $215M Settlement Offered in Alleged Abuse by Campus Gynecologist

    $215M Settlement Offered in Alleged Abuse by Campus Gynecologist

    However, the Los Angeles County district attorney's office is now reviewing dozens of cases for possible sex-crimes charges. According to attorneys that have filed state actions, the settlement applies only to the federal class-action cases.

Comments

Latest news

Leftist's party urges authorities to act on WhatsApp election
WhatsApp is among the most preferred messaging and social media apps in Brazil, which is home to roughly 120 million users. Justice Rosa Weber, president of the Electoral High Court (TSE), will release a statement on Friday (19th).

Pliskova, Svitolina lead White Group qualification scenarios after WTA Finals Day 1
Karolina Pliskova beat defending champion Caroline Wozniacki 6-2 6-4 on the opening day of the WTA Finals in Singapore . The Czech surrendered her serve in the opening game of the match but managed to recoup the break in the next game.

China to launch 3 artificial moons in space by 2022
The artificial moon , essentially an illuminated satellite, will hover 500 km above Earth, much closer than the moon's 384 km. While the artificial-moon project sounds like science fiction, something similar has been attempted before.

Barcelona not considering swoop for Neymar, says vice-president
Barcelona have reportedly indicated that they are ready to secure a reunion with Neymar in the summer. The attack has scored 39 goals from 40 appearances for PSG in all competitions.

Melania Trump in mid-air EMERGENCY as plane hit by ‘mechanical issue’
He has been a vocal critic of rapper and Trump supporter Kanye West, who recently visited the president at the White House . She added, "It was a hard decision for me, but I'm proud of myself for being so courageous ".

Trailer for Katie Taylor documentary KATIE released
Will you be going to see KATIE in theaters? "I have trained hard for 10 rounds and I'm in great shape and excited for the fight". At the final press conference, Serrano didn't boast that she would beat Taylor but she did promise to take her the distance.

Eric Reid, Malcolm Jenkins get in confrontation
A strip-sack on Wentz by defensive end Wes Horton ended the Eagles' last-gasp effort and gave Carolina the dramatic victory. A few chunk plays allowed Newton to find tight end Greg Olsen for a 1-yard TD pass.

Raiders WR Amari Cooper drawing interest from 3 teams
Cooper was a Pro Bowler each of his first two seasons, going for at least 1,000 yards and five touchdowns each. At 3-3, the Cowboys are tied with the Eagles for second in the NFC East.

LA Dodgers down Milwaukee Brewers; Dodgers head to World Series
Kershaw's teammates mobbed the lefty near the mound after the final out, and the celebration was just beginning for the Dodgers. Puig's three-run shot off reliever Jeremy Jeffress quieted the breathless, screaming Brewers fans at Miller Park.

Postal strike could start Sunday at midnight
The union says they're committed to continuing delivery of pension and social assistance checks, as it has done in the past. However, on Saturday, the corporation refused a proposal to evaluate postal routes by the volume of mail, Gélineau said.

Scientists create self-lubricating condoms that stay slippery for 1000 thrusts
Scientists have reportedly found a way to make condoms lubricate themselves when they come in contact with human skin. The views expressed therein are not necessarily those of stlucianewsonline.com, its sponsors or advertisers.

Anti-Brexit protest in London calls for second referendum
Organisers are hoping the protest, calling for a final say on the Brexit deal, will be the "biggest, loudest and most important". Britain is scheduled to leave the European Union on March 29, but negotiations have been plagued by disagreements.

1 heats up after Novak Djokovic's victory in Shanghai
I could serve maybe a little bit better, but still, I felt even if I was serving little bit better, he'd still return my serves. The German has so far picked up three titles this year to continue his contention for being the next top player in the sport.

Astonishing Alvaro Morata conspiracy theory from former Chelsea boss
Players under consideration are AC Milan's Patrick Cutrone and RB Leipzig's Timo Werner, but their young age makes them a risk. Chelsea have reportedly identified two potential striker targets ahead of the January transfer window.

China says top Macau official falls to death from building
A notice on the liaison office's website said Zheng was still working on Friday, when he met with representatives of a think tank. Beijing released a brief statement saying that Zheng Xiaosong had been suffering from depression, implying he had killed himself.

Other news