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The US Commodity Futures Trading Commission (CFTC) has demanded that the alleged founder of the $ 147 million Ponzi scheme Control-Finance be declared default.
On April 3, the CFTC filed for default after alleged founder and director of Control-Finance, Benjamin Reynolds, did not respond to the regulator’s complaint.
CFTC is unable to locate Reynolds after 10 months
The CFTC complaint was filed in June 2019, claiming Reynolds has embezzled at least 22,858 BTC from more than 1,000 clients since May 1, 2017.
In January 2020, the SEC requested additional time to locate Reynolds during an ongoing investigation in South Korea.
In July 2019, the regulator attempted to serve Reynolds at two addresses associated with the director of the regime, later learning from Control-Finance investors that the accused may be in Korea.
At the same time, the CFTC filed a notice of voluntary dismissal without prejudice to Control-Finance.
The Ponzi scheme eliminates $ 147 million
The CFTC complaint alleges that Control-Finance said it diverted client funds to the trading operations of its experienced employees, diverting new depositor funds to former system investors to create the illusion of profits and create hype.
The company built a pyramid scheme around an alleged affiliate program, which was promoted on Twitter, Facebook and YouTube. In September 2017, Control-Finance removed its website, stopped making affiliate payments, and removed advertising content from social media.
While claiming that client funds would be returned during the next two months, the pair in which the scheme was liquidating the 22,858 BTC in its possession for approximately $ 147 million.
Control-Finance sought to launder funds through thousands of transactions, with BTC eventually making its way to wallets held with Canadian cryptocurrency exchange CoinPayments.
