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HomeBitcoin NewsCFTC Files Charges Against Alleged Bitcoin Ponzi Scheme Operators

CFTC Files Charges Against Alleged Bitcoin Ponzi Scheme Operators


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Ponzi schemes are nothing new in the world of Bitcoin and cryptocurrency. A fair few companies effectively try to defraud investors by claiming to link their activity to Bitcoin. One such company goes by the name of Gelfman Blueprint, Inc. This company is based in New York and now faces charges filed by the CFTC. The charges include fraud, issuing false account statements, and misappropriation. Not a good sign for this company, assuming there is any truth to these allegations.

It is not the first time a company is charged with such allegations. In fact, some companies deserve more scrutiny by the CFTC in this regard. Gelfman Blueprint is not necessarily a company most cryptocurrency users are familiar with. The company ran its Bitcoin “scheme” from 2014 to 2016. During this time, they collected over $600,000 in investments from several dozen individuals. In return, clients receive account statements regarding solicited investments in Bitcoin.

CFTC Cracks Down on Bitcoin Ponzi Scheme

According to the CFTC, all of these statements are completely false. Moreover, the whole investment scheme was fraudulent, to begin with. There is no proof of a pooled commodity fund for high-frequency algorithmic trading. The promised 7-9% monthly returns were never achieved either. Instead, the company was only able to make payments as long as new investors kept putting money in. Payouts eventually stopped, which is no surprise whatsoever.

With this investigation underway, it will be interesting to see what information comes to light. More specifically, the CFTC claims the company faked a computer hack to conceal losses. It is not uncommon among Ponzi Scheme operators to behave in such a manner, though. Right now, the CFTC seeks restitution to defrauded pool participants. Moreover, there are some civil monetary penalties on the table as well. It is unclear if any of the program’s operators will face jail time, but that seems highly likely.

Bitcoin and other cryptocurrencies continue to attract nefarious individuals. Given the recent price increase, that is not surprising whatsoever.  It is good to see such Ponzi Schemes being brought to a halt, though. Albeit the facts date back to 2014, the end result will be significant. We can only hope some of the victims will recover their losses in this regard. For now, it remains to be seen how things will play out in this regard. It will not be the final investigation involving Bitcoin companies making fake claims, though

Header image courtesy of Shutterstock

JP Buntinx
JP Buntinx
JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.


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