The US Department of Justice (DoJ) announced this on October 1 the director of the Crypto Asset Custody Company, Volantis Market Making, pleaded guilty to more than $ 3.25 million in commodity fraud.
The Volantis manager, Jon Barry Thompson, 49 years old, misrepresented a company demanding $ 3.25 million to buy Bitcoin (BTC) that was allegedly “risk free” through a third company in June and July 2018.
Although Thompson said so wouldn’t part with the money until the third company delivered the BTC, the acting US attorney for Manhattan, Audrey Strauss noted that:
“Thompson sent the money to a third party without first receiving the bitcoin and the money was never reclaimed.”
The Justice Department found that Thompson falsely alleged that the transaction was through a “Atomic exchange process” and lied to the company for several days about the status of its funds and the cryptocurrency, that in the end none of them got returned.
Thompson pleaded guilty to a fraud count, who carries a maximum sentence of up to 10 years in prison. Thompson will be sentenced on January 7, 2021.
Thomspon was indicted in September 2019 on four fraud cases related to the $ 7 million Volantis allegedly defrauded two different customers. including the charge you have just pleaded guilty to. In the indictment, the FBI deputy director has William Sweeney Jr., stressed that Thompson intentionally used “native crypto jargon” to confuse and consequently exploit his victim:
“With phrases and terms that the victim companies did not understand, he allegedly took advantage of their ignorance about cryptocurrencies.”
The U.S. authorities recently stepped up efforts by the international police force to fight crypto-asset fraud. Action against various scams in Russia and Malaysia last month.