Bitcoin : a first case of fraud uncovered by CFTC

The CFTC or Commodity Futures Trading Commission has filed its first charges against an investment company specialized in the Bitcoin. The company Gelman Blueprint, chaired by Nicholas Gelfman present in New York, has been accused of fraudulent misrepresentation regarding the investment of Bitcoin.

The company had apparently run a program Ponzi scheme from 2014 to 2016, by informing investors that he had developed a computer algorithm called a “Jigsaw” to get a return on substantial thanks to a fund of products. In fact, the entire practice was a fraud.

Substantial losses to the key

The scam has apparently contributed to the loss of nearly 600,000 dollars. More than 80 people are involved in this fraud. The defendants have consistently recorded substantial gains, providing investors with performance reports that are falsified, all in excess of the funds personally.

To this end, the director of the CFTC, James McDonald said that through his work, through the Commission, the organization has demonstrated its ongoing commitment to facilitate innovation in FinTech in promoting the market. He added that a part of this commitment is acted aggressively to root out fraud within this sector.

The battle is launched against the fraudsters

The main objective of this organization is to combat the fraudsters. In recent years, the market of Bitcoin has grown considerably, thus attracting attention. The defendants are a general concern of the clients interested in crypto-currencies, their promise to invest in Bitcoin when in reality, they won’t buy into the system Ponzi fraudsters.

The CFTC will continue to work hard to try to identify and prosecute the bad actors of this market. It has already shown the trends of Pro-Bitcoin, giving LedgerX the right to put in place a regulated market. This action will favour the investors authentic.