There’s a good reason why U.S. regulators are treading slowly into regulation of the nascent digital assets world. It’s a wild-west of cautionary tales taking place in a marketplace yet to develop systems integrity.
In early January 2020, a little more than six (6) months since the Virtual Currency Task Force in the Division of Enforcement at the United States Commodity Futures Trading Commission (CFTC) filed its original complaint in the U.S. District Court for the Southern District of New York against Control-Finance Limited, a UK based cryptocurrency trading fraud, and its Director, Benjamin Reynolds, the Commission is back in Court requesting that it authorize service of process on the defendant “by publication in The Daily Telegraph,” a London based newspaper of record. According to the Commission’s memorandum, it has been unable to locate Mr. Reynolds.
Control-Finance Limited and Mr. Reynolds are charged with “exploiting public enthusiasm for Bitcoin by fraudulently obtaining and misappropriating at least 22,858.822 Bitcoin—worth at least $147 million at the time [June 2019]—from more than 1,000 customers. The Ulsan District Prosecutors’ Office in South Korea and the British Columbia Securities Commission are also involved in this international man-hunt.