The filing states that Saffron did not trade investor funds. Bitcoin deposits were reportedly sent to the defendant’s personal wallet. Circle Society operated from late 2017 until its recent takedown. Given that the company appears to have paid some early investors with funds deposited by newer members, the CFTC states that the company operated “in the manner of a Ponzi scheme.” The case has prompted the regulator to reissue earlier advice to help investors stay safe. In an article titled “Binary Options Fraud”, it gives various red flags for the public to be aware of, as well as methods of checking out a firm’s legitimacy for oneself. As part of the recent court filing, the CFTC Chairman Heath P. Tarbert provided comments on the importance of bringing down scams preying on people’s optimism about the future of cryptocurrency. As well as reaffirming the regulator’s commitment to protecting the public, Tarbert added that such scams do a great disservice to the emerging digital asset industry. Claiming that schemes like Circle Society undermine responsible development in the industry, he stated that the only way for America to lead the new market would be to bring greater integrity to the space. Recently, the CFTC labeled Ether as a commodity, as BeInCrypto has previously reported. What do you think about Tarbert’s seemingly pro-cryptocurrency comments? Comment below.
The CFTC recently brought an enforcement action against a #binaryoptions Ponzi scheme that took in $11 million in #Bitcoin and dollars to trade binary options on foreign currencies (#forex). Learn how these schemes work and what to watch out for: https://t.co/tCVinSi26y— CFTC (@CFTC) October 17, 2019
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