Federal Court Orders UK Man to Pay $572M for Control-Finance Bitcoin Scam

The Commodity Futures Trading Commission (CFTC​) announced that the U.S. District Court for the Southern District of New York entered a default judgment against Benjamin Reynolds, the mastermind behind a massive bitcoin Ponzi scheme, finding that he obtained and misappropriated more than 22,800 bitcoin from members of the public between May and September 2017.

According to the press release, the court's March 2, 2021 order required Reynolds to pay the CFTC a total of $572 million in penalty and restitution.

The judgment is the result of a 2019 enforcement action brought by the CFTC charging Reynolds, conducting business as Control-Finance Limited, with fraud and misappropriation. 

As the scam's director vanished, the watchdog cautions victims that the court's order may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds.