CFTC will now pay for exposing fraudulent schemes

Whistleblowers may be awarded with a whopping $100,000
19 February 2018   812

The US CFTC has received a great number of complaints the concern the financial loss of ordinary American citizens who became the victims of so called “pump-and-dump” schemes that deal with virtual currencies. The commission is able to enforce anti-fraud measures in case virtual currency cash market are operated as a commodity in interstate commerce.

So, today it has announced a bounty with the following conditions:

If you have original information that leads to a successful enforcement action that leads to monetary sanctions of $1 million or more, you could be eligible for a monetary award of between 10 percent and 30 percent.

 

The US CFTC

The commission stresses out that such fraudulent schemes have always been present. And the nature of these schemes has no changed at all: false promises of groundbreaking products, major breakthroughs; then the demand grows along with  share prices and finally at some point - prices crash and the investors are left with nothing. Nowadays, thanks to social media and messaging apps the organization of such schemes and the hype became anonymous.

The risk grows as the number of new virtual currencies and the respective tokens grows more rapidly in a mostly unregulated area of financial transactions. In order to protect oneself, CFTC recommends to:

  • thoroughly study the virtual currencies using all the means necessary,
  • guaranteed investment is a fiction,
  • not to trust any ads and not to rely on a single tip of any token prior to purchase.

On the other hand, such bounties are often the stepping stones in establishing more legislative agenda and future enforcement budget. Certain actions on setting up the control have already been made by CFTC earlier this month with regulation workgroup and crypto fraud warnings.

US Authorities to Sell $4.3M Worth Seized BTC

As reported, the Bitcoins were seized during different federal investigations
18 October 2018   100

The US Federal Penitentiary and Marshals Service has announced an auction, during which 660 Bitcoins will be sold, previously confiscated by law enforcement agencies. The current market value of the coins put up for sale is about $ 4.3 million, CoinDesk reports.

Bitcoins offered for sale were seized during federal criminal, civil and administrative investigations.

The auction will be held on November 5, and to participate in it, you must register no later than October 31 and make a deposit of $ 200,000.

The trades will be divided into two parts and include the sale of six blocks of 100 BTC and one more block of 60 BTC. Auction participants will not be able to view other people's rates or change their own.

The Office clarified that part of the assets put up for auction includes Bitcoins, which were seized during the recent investigations into the cases of the traders Teresa Tetley and Thomas Mario Costanzo. Teresa Tetley was sentenced in July to a year in prison on charges of trading in cryptocurrency without the necessary license and laundering money obtained from drug trafficking.

The Marshals do not report which part of the bitcoins seized from Tetley and Costanzo is put up for auction, however, it was previously known that 40 BTC were withdrawn from the first, and 80 BTC from the second.

Two previous major auctions for the sale of confiscated bitcoins were held in the United States in January and March of this year. In the first case, 3813 BTC was sold, in the second - 2170 BTC.