Commodity Futures Trading Commission

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by @christoph
2021-03-29T21:00:02+00:00
Law
British man to pay over $571 million for defrauding people out of more than 20,000 bitcoin
British man to pay over $571 million for defrauding people out of more than 20,000 bitcoin
Credit: unsplash.com / Pierre Borthiry

For defrauding numerous people out of more than 20,000 Bitcoin, a British man is to pay a record-breaking fine. The U.S. Commodity Futures Trading Commission (CFTC) had previously moved against the British citizen Benjamin Reynolds in federal court.

The court, it has now been revealed, issued a penalty order in early March. Since it considers the guilt of the defendant as proven, this is to pay on the one hand approximately 429 million dollar (approximately 364 million euro) as punishment as well as scarcely 143 million dollar (approximately 121 million euro) as damages to 169 US customers. The number of those actually affected could be even higher.

The CFTC warns that the court's order does not automatically mean that affected parties will get their cryptoassets or their compensation payment. Because even if Reynolds can be tracked down, it may still turn out that he does not have the financial means to settle the demanded sums.