The US Commodity Futures TradingTrading
– is an economic term that means the process of independent trade, independent analysis of the market and the conclusion of trade transactions.Details Commission (CFTC) imprisoned a Bitcoin merchant and fined him over $ 1 million for using a fraudulent scheme.
According to a press release published on Friday by the CFTC, a trader, Arizona resident Joseph Kim, admitted that he was deceiving investors by hundreds of thousands of dollars. He also appropriated more than 600,000 dollars from the personal funds of the former employer.
Between September and November 2017, Kim transferred Bitcoin and Litecoin from the wallet of her employer, a Chicago trading company, to her personal accounts, which resulted in a loss of $ 601,000. When the firm questioned the integrity of Kim's work, he falsely stated that security problems with crypto-exchange require the transfer of finances to other accounts. Exposing an employee, in November of the same year, the company immediately dismissed him.
But Kim did not stop. Then he began to request funds from individual customers, continued to sell cryptocurrency, hoping to make a profit. As a result, the fraudster received about $ 545,000 fraudulently.
Kim lied to clients that he voluntarily left his employer to open his own trading company. He also falsely claimed that he would invest in a low-risk arbitrage strategy. And when in fact he made risky transactions, he lost all $ 545,000 of his clients' funds.
In addition to a fine of $ 1,146,000, the CFTC also permanently banned Kim from trading in the cryptocurrency market, sentencing him to 15 months in prison.
James MacDonald, director of security at the CFTC, said: "Today’s warrant is another case that demonstrates the CFTC’s commitment to actively protecting virtual currency markets and protecting the interests of citizens."
Editor: Yuliya Soroka