Pi Network - auto mobile mining: Join now and be one of the pioneers!!

Blog

The CFTC has reissued previous advice to help the public evaluate the legitimacy of Bitcoin and cryptocurrency investment opportunities. The warning comes in the wake of a takedown of a company suspected of defrauding $11 million from investors.

The Commodities Futures Trading Commission (CFTC) has charged the Nevada-based firm, Circle Society, Corp. and its owner, David Gilbert Saffron, with fraudulent solicitation, misappropriation, and registration violations. A civil enforcement action, filed on Wednesday, claims that the company solicited funds from at least 14 investors on the grounds that they would see 300 percent returns on their investment in just weeks.

The firm would apparently use investor funds to trade cryptocurrency and foreign exchange pairs. Company correspondence stressed Saffron’s skill as a binary options trader in an effort to convince investors to part with their cash.

The filing states that Saffron did not trade investor funds. Bitcoin deposits were reportedly sent to the defendant’s personal wallet.

Circle Society operated from late 2017 until its recent takedown. Given that the company appears to have paid some early investors with funds deposited by newer members, the CFTC states that the company operated “in the manner of a Ponzi scheme.”

The case has prompted the regulator to reissue earlier advice to help investors stay safe. In an article titled “Binary Options Fraud”, it gives various red flags for the public to be aware of, as well as methods of checking out a firm’s legitimacy for oneself.

Bitcoin BTC Fraud

Bitcoin BTC Fraud

As part of the recent court filing, the CFTC Chairman Heath P. Tarbert provided comments on the importance of bringing down scams preying on people’s optimism about the future of cryptocurrency. As well as reaffirming the regulator’s commitment to protecting the public, Tarbert added that such scams do a great disservice to the emerging digital asset industry.

Claiming that schemes like Circle Society undermine responsible development in the industry, he stated that the only way for America to lead the new market would be to bring greater integrity to the space.

Recently, the CFTC labeled Ether as a commodity, as BeInCrypto has previously reported.

What do you think about Tarbert’s seemingly pro-cryptocurrency comments? Comment below.


Images are courtesy of Twitter, Shutterstock.

No Comments

Be the first to start a conversation

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Categories

Pi Network - auto mobile mining

Become one of the pioneers!!

Random Posts

DOWNLOAD MY EBOOK FOR FREE

"Your Headline Here How I Made $4947 In 1 Month"

Lorem pretium lorem orci elit nunc imperdiet nec vel sit pretium hendrerit amet nec orci gravida gravida sapien purus massa

Quick Bio About Me

mypicmeLorem proin accumsan accumsan volutpat ut nullam odio eleifend libero quisque ipsum gravida eleifend dolor nunc sagittis venenatis orci eleifend lorem quisque venenatis non sagittis sagittis ipsum nunc.

lacus eleifend pretium eros sed consectetur venenatis praesent sapien consectetur dolor nullam laoreet orci mauris ornare congue lacinia auctor lorem quis quis lacus eleifend pretium eros sed consectetur venenatis praesent sapien consectetur dolor nullam laoreet orci mauris

Resources

  • Resource 1

    Lorem sed praesent quisque auctor libero eros lorem nec praesent accumsan ornare venenatis nullam.

  • Resource 2

    Lorem sed praesent quisque auctor libero eros lorem nec praesent accumsan ornare venenatis nullam.

Random Blog Posts

© 2020 Cryptoracle.info - Crypto News