Arab Press

بالشعب و للشعب
Thursday, Mar 28, 2024

The mysterious case of the $571m Manchester 'Bitcoin scam'

The mysterious case of the $571m Manchester 'Bitcoin scam'

The US’s commodities watchdog is on the hunt for a Manchester man it claims is the mastermind behind a Bitcoin scam that swindled thousands of victims and owes $572m (£416m).
The regulator is facing a major obstacle, however, as their suspect, Benjamin Reynolds, 38, appears to have vanished without a trace. Questions have now emerged over whether he ever existed.

The investigation comes as cryptocurrencies continue their surge into the mainstream. Coinbase, the cryptocurrency exchange, was valued at $100bn in its stock market debut on Wednesday. The price of Bitcoin hit a record of $64,500 this week as corporate interest continued to pump up the price.

Yet cryptocurrency scams and frauds remain common, and frequently difficult for investigators to crack. The mystery of Benjamin Reynolds is a case in point.

Last month, the US Commodity Futures Trading Commission (CFTC) accused Reynolds of stealing bitcoin worth around $1.3bn through a company named Control-Finance. A court in New York has ruled that Reynolds owes $143m in restitution in addition to a $429m fine.

Meanwhile, some of those who lost out have formed a digital posse to pursue Reynolds, convinced he may not be who he seems.

In May 2017, Facebook adverts paid for by the company linked to Reynolds, Control-Finance, began enticing investors with promises of hefty passive income. It promised to invest customers’ bitcoin, boasting 1.4pc daily returns.

According to the CFTC, Reynolds not only used the company to encourage customers to give him cryptocurrency but to share links with their friends and family to get more people involved in his scheme. He appeared in YouTube videos and communicated with customers over email and text, often fulfilling withdrawal requests and therefore failing to raise suspicion.

US regulators claim this was just a ruse. Instead, they allege, Reynolds took most of the bitcoin for himself and used customers’ deposits to satisfy withdrawal requests, similar to a Ponzi scheme. His company, Control-Finance, solicited at least 22,858,822 bitcoins before vanishing from the web.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
PM Modi Announces Opening Of New CBSE Office In Dubai
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Facebook and Instagram Ban Iran's Supreme Leader
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
The Saudi Kingdom's Ultimatum to Israel: A Win-Win Peace with Saudi Arabia and the Arab World, or a Lose-Lose Continued Occupation and Endless Conflict
Biden condemns anti-Arab hate after WSJ opinion piece calls Dearborn ‘jihad capital’
Turkey Releases Seven Hostages Captured by Pro-Gaza Gunman
Arab Parliament Commends Women's Contributions to Societal Development
British and Hungarian Foreign Ministers visited Lebanese leaders to stress the importance of enacting UN Resolution 1701
Yemen's Houthis Say They Targeted British Merchant Vessel In Red Sea
Donald Trump Nominated for Nobel Peace Prize for 'Historic' Middle East Policy
US lawmakers approve F-16 jet sale to Turkey following NATO expansion support
Saudi Arabia Climbs 25 Places in World Bank's National Statistics Indicator
Tourism Growth in Saudi Arabia Fuels Advancements in the Hospitality Industry," Says Rotana Official
Houthi Rebels Request Departure of UN Staff from Yemen, Including US and UK Personnel, within a Month
Modi Inaugurates Hindu Temple on Site of Demolished Mosque in India
Over 25,000 Deaths in Gaza Amid Israeli Offensive
Escalating Clashes in Gaza as Israel Distributes Leaflets to Assist in Locating Hostages
Turkey's First Astronaut Set to Launch for International Space Station Today
Head of Palestinian Investment Fund Warns More People May Die of Hunger Than War in Gaza
Palestinian Envoy Criticizes UK for Alleged 'Double Standards' in Policies Toward Israel
Morocco to Lead UN Human Rights Council in 2024
Is artificial intelligence the solution to cyber security threats?
Egypt has been identified as the leading military force among Arab nations and ranks 15th globally
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Iranian Nobel Laureate Narges Mohammadi Receives Additional Prison Sentence
"Gazans Urge Israeli Forces to Target Hamas in Leaked Audio"
Biden States US and UK Airstrikes on Houthis Were a 'Defensive Action
Large Pro-Palestine Rally in London as Gaza Conflict Hits Day 100
South Africa Urges World Court to Halt Israeli Actions in Gaza
×