CFTC ordered the creators of the ATM Coin to pay a sum of $4.25 million as a settlement amount for the fraud case that was bought forward by the Virtual Currency Task Force of the agency.
CFTC fines ATM Coin worth $4.25 million
As per the report, Kantor, G. Thomas Client Services and Blue Bit Analytics illegally posed as the Futures Commission Merchants without having been registered as with the CFTC.
The case was filed last year and now the group is charged with fraud in connection to a scam that involved a cryptocurrency ATM Coin.
CFTC stated that the defendants were lured into investing in binary options with the promise of the return of their investment in a set interval. The binary options as according to CFTC are the yes or no option. Some of the binary options are overseen by the regulators in the US, while various online schemes do not lie under the domain of regulatory laws, protections, and requirements.
What is the ATM Coin fraud case?
Coming back to this case, the investors were not aware that the Blue Bit Banc computer software was employed for tampering of the data that was related to the binary options.
The investments of Blue Bit Banc were also converted into ATM Coin, a cryptocurrency that is considered to be worthless by the CFTC.
CFTC fines ATM Coin to ensure a settlement for the affectees of the criminal syndication. According to the order of the court, the defendants are supposed to pay a sum of $4.25 million dollars which includes; $846,405 as restitution, a penalty against Mullins of about $300,000, and $2.5 million dollars as fine against Kantor and the related firms.
This is one of the scams int he long list of cryptocurrency scams that have hit the sphere so far. This is not the first time such cash is brought forward to justice, there are various successful and unsuccessful examples in the past as well. However, CFTC fines ATM Coin is another victory for the justice and truth to prevail.
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