October 2, 2020

Jon Barry Thompson of Pennsylvania has been ordered to pay approximately $7.4 million in restitution for making false representations to two customers regarding purchases of Bitcoin.  According to the CFTC press release, Thompson induced the customers to send him the funds by assuring them he had the Bitcoin in hand.  However, after receiving the funds, he distributed the money to third parties, failed to provide the customers with any Bitcoin, and made false representations regarding the location of the Bitcoin and the status of the funds.  Thompson pleaded guilty to one count of commodities fraud in a parallel action relating to this matter, and will be sentenced in January 2021.  CFTC

Tagged in: Criminal Proceedings, Cryptocurrency, Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Misrepresentations,