CFTC Accuses Two US Residents of $5M Bitcoin Scam

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The US Commodity Futures Trading Commission (CFTC) has charged two residents of Florida with defrauding investors out of more than $5 million.

According to the regulator, Philip Reichenthal and Randy Craig Levin duped two groups of investors in 2018 during a Bitcoin transaction.

Reichenthal allegedly used his status as a licensed lawyer to secure the deal.

Unbeknownst to investors, the defendants had no intention of transferring any Bitcoin. In response, the CFTC ordered the accused to return the money to the investors and banned them from any futures trading or obtaining a license from the regulator.

“The Commission continues to root out digital asset fraud,” stated Ian McGinley, head of enforcement with the CFTC.

This case follows a similar situation in Ohio, where Michael Ackerman was ordered to pay more than $50 million for alleged cryptocurrency fraud. Rostin Benham, head of the CFTC, has recently called for the agency to have more power in overseeing digital assets.