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US citizen Joseph Kim of Phoenix, Arizona, was fined $ 1.1 million and sentenced to 15 months in prison for misappropriation of Bitcoin (BTC) and Litecoin (LTC) by several people, the report of the Commodity Futures US Trading Commission (CFTC) on Friday 9 November.
The CFTC found that Kim has defrauded his employer, a Chicago-based proprietary trading company, transferring approximately $ 601,000 worth of BTC and LTC to their accounts in 2017. When asked about missing cryptocurrencies, Kim he falsely claimed that security issues made him transfer digital currencies to different accounts. Shortly thereafter, the embezzlement was discovered and Kim was fired.
Reportedly, Kim has defrauded private investors to return funds to his employer. According to the CFTC, it has attracted about $ 545,000 of cryptocurrencies from five people, falsely stating that he had left the company voluntarily to start his own trading company. Subsequently, Kim lost all investor funds following a high-risk bet.
Given the circumstances of the case, the CFTC ordered Kim to pay $ 1.1 million in return to his company and his customers. Furthermore, the commission imposed a ban on trading and a permanent reminder on him.
In a separate prosecution filed by the United States Attorney for the Northern District of Illinois, Kim pleaded guilty to fraud to his employer and misappropriation of private investor funds, and received a 15-month sentence .
The CFTC Executive Director, James McDonald, says the committee will continue to cooperate with the US Department of Justice (DoJ) and the FBI to prevent cryptographic crimes.
At the beginning of this month, the US Securities and Exchange Commission (SEC) accused Zachary Coburn, founder of the EtherDelta cryptographic token trading platform, with the management of an unregistered stock exchange. He agreed to pay up to $ 400,000 in fines for an 18-month operating period.
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