Home Bitcoin News Bitcoin Scam Billion dollar ‘Bitcoin scammer from Manchester’ hunted by US police

Billion dollar ‘Bitcoin scammer from Manchester’ hunted by US police

4 min read

A thriller man from Manchester stands accused of being the mastermind behind a billion greenback Bitcoin rip-off.

The US’s commodities watchdog is searching Benjamin Reynolds, 38, who’s accused of swindling cash out of 1000’s of individuals as a part of a Ponzi scheme involving the cryptocurrency.

In March, the US Commodity Futures Buying and selling Fee (CFTC) accused Mr Reynolds of stealing Bitcoin price round $1.3bn by an organization named Management-Finance. A court docket in New York has dominated that he owes $143m in restitution along with a $429m fantastic.

However the hunt for the alleged fraudster has come unstuck as Reynolds seems to have vanished – or, authorities concern, by no means existed within the first place.

Studies present that Management-Finance took out adverts on Fb in 2017 that enticed potential buyers with the promise of 1.4 per cent day by day returns.

The alleged scammer appeared in YouTube movies selling the scheme, responded to prospects over electronic mail and textual content, and inspired victims to share hyperlinks with their family and friends to develop the scheme.

For six months from March 2017 he fulfilled prospects’ withdrawal requests, permitting the scheme to proceed arousing suspicion.

However in September, Mr Reynolds instantly shut down the web site, halted funds to prospects and affiliate members and deleted promoting content material from the agency’s social media accounts. 

He instructed buyers they’d obtain funds inside three months in an try and quash considerations.

The CFTC alleges he “had no intention of resuming operations and intentionally lulled prospects into complacency whereas [he] set to work laundering almost $150m in misappropriated Bitcoin by 1000’s of circuitous blockchain transactions”.

The regulator introduced that the U.S. District Court docket for the Southern District of New York has entered a default judgement in opposition to him. “Between Could 2017 and October 2017, Reynolds used a public web site, numerous social media accounts, and electronic mail communications to solicit at the least 22,190.542 bitcoin.

“[These were] valued at roughly $143m on the time, from greater than 1,000 prospects worldwide, together with at the least 169 people residing within the U.S,” the authority mentioned.

“The CFTC cautions victims that restitution orders could not outcome within the restoration of any cash misplaced as a result of the wrongdoers could not have ample funds or belongings,” it added.

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