The U.S. Court has recently convicted two preparators against a ponzi scheme that has intentionally misappropriated its clients. Venture Capital Investments LLC and Breonna Clark were held accountable by the court for running this fraudulent scheme. The U.S. Commodity Futures Trading Commission (CFTC) brought these charges against the preparators. According to the announcement by the U.S. Court, the accused have solicited funds from around 72 clients and promised high returns to them. U.S. Court Claims That Preparators Used Funds for Personal Use According to the U.S. Court, these scammers have also posted their schemes on social media and done promotions from there only. They claimed that the funds will be traded by a master team of traders hence most of the new crypto users became victims of it. The U.S. court also claims that all the funds that these fraudulent schemes have gained from people were spent on their personal expenses. A lot of high-value goods were purchased using these funds. However, they have managed to gain $450,302 worth of funds from the customers which were spent on their luxury goods. Defendants Banned From Registering With CFTC The U.S. Court has now ordered the preparators to give restitution worth $450,302 to the defrauded clients. Along with this, they are also required to pay an equivalent civil penalty as well hence, the total fine imposed by the court is around $900k. Along with this, they will have to cover the cost involved in the CFTC investigation. The preparators will not be able to register with the CFTC or any market that is regulated by it. Even though the court has ordered the scammers to return back the funds of the victims, CFTC has still warned the victims that they might not be having enough money to return it back to the victims.
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