Court Orders a Fine of $4.25M Against ATM Coin Founders

In a U.S. Commodity Futures Trading Commission-led case, a court has fined another digital currency investment plot for extortion and misusing customer funds.

As indicated by a CFTC news report from November 1, the district court for the Eastern District of New York requested a fine of $4.25 million against Blake Harrison Kantor and Nathan Mullins in addition to four companies including Blue Bit Banc, Blue Bit Analytics, Mercury Cove, and G. Thomas Client Services.

The order incorporated a civil monetary payment penalty against Kantor and the companies for $2.5 million, while Mullins got a penalty of $300,000. Kantor and Mullins were additionally requested to hand over “ill-gotten gains” of $515,759 and $89,574, respectively.

The CFTC initially filed the case against Kantor and his partners in April last year for misrepresentation, including binary options—a financial product offering a fixed financial result or none at all—and the digital currency ATM Coin. Under the scheme, the respondents utilized in-house software to adjust the outcome of binary options for the company, Blue Bit Banc.

Investor funds were additionally moved into the “worthless” crypto, which Kantor and Mullins told investors was “worth substantial sums of money.”

The CFTC stated the defendants further convinced clients to deposit cash in accounts in the island country of St. Kitts and Nevis, expanding the trouble of monitoring such investments.

In spite of the fact that the defendants are requested to pay compensation to unfortunate clients, the CFTC said they might not hold assets equivalent to the stated order.