Man Sent to 7 Years Behind Bars for Binary Options and Cryptocurrency Fraud

Department of Justice vs crypto fraud

According to the US Department of Justice, Blake Kantor, the founder of the now-defunct Blue Bit Banc and Blue Bit Analysis has been sent to 86 months in prison for manipulating and defrauding investors as part of a binary options and crypto scam. The sentence was passed on Monday, July 1 by the United States District Judge, Sandra J, Feuerstein after a thorough investigation.

Established in 2014, Blue Bit Banc prided itself as a binary options trading company and ran until 2017 when fate caught up with it. During this time, Kantor and a group of other representatives at the firm persuaded over 700 investors to invest in their binary options and their valueless cryptocurrency called ATM Coin.

Kantor and his group urged investors to make hay while the sun shines and told them that a representative could place fruitful binary options trades if they so wish. On the issue of returns, Kantor made investors believe that they could get massive gain from their placement and that the predetermined profit will be based on the actual prices of the currencies, securities, and other investment at certain points in time.

Little did they know that Kantor designed one of the firm’s computer software to fraudulently alter the binary options investment data in such a way that only the firm would gain from the investment, keeping investors at loss all the time.

Amplifying the Worth of a Worthless Cryptocurrency

Adding to his pile of crimes, Kantor also reportedly persuaded a good number of investors to convert their investment in the firm into their useless digital coin, ATM Coin, which he lied had a value of $600,000.

In 2017, when Kantor ran out of luck, report shows that he had successfully defrauded over 700 investors of about $1.5 million on the binary options trading scheme and the cryptocurrency stratagem.

Obstruction of government investigation was yet another crime in his long list of crimes. Kantor did everything within his power to ensure the Federal Bureau of Investigation (FBI) does not find anything on him after the FBI informed him that they were investigating his involvement in the binary options and crypto scheme.

In an attempt to cover his track, he directed a co-conspirator to alter the firm’s customer list and lied to the FBI that he had not been involved in binary options since before the creation of the firm.

Well, there is only so much one can hide with lies. The truth always pops its head out. Together with other law enforcement agencies such as the Internal Revenue Service Criminal Investigation (IRS-CI), and the Commodity Futures Trading Commission (CFTC), the FBI was able to uncover the fraudulent scheme operated by Kantor and his group.

After pleading guilty to the charges against him, Kantor was, on Monday, sentenced to 86 months behind bars for his major role in the scheme. Also, this sentence will be followed by 3 years of supervised release. Furthermore, the court ordered Kantor to pay the sum of $806,405 as restitution for his crimes and to forfeit $1.5 million and $153,000 of stolen proceeds.

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