Brooklyn, NY – November 1, 2019 – Blake Harrison Kantor and Nathan Mullins were found to have committed fraud and misappropriated client funds in a virtual currency scheme, according to a default order entered by the U.S. District Court for the Eastern District of New York on October 23, 2019.
The Commodity Futures Trading Commission (CFTC) brought the case, alleging a binary options scam involving ATM Coin. Kantor and Mullins, both of New York, along with several corporate entities, were charged with manipulating data to favor their firm, Blue Bit Banc, and disadvantage investors. The defendants directed investors to send funds to an account in St. Kitts and Nevis, obscuring the trail of money.
The court ordered the defendants to pay a total of $4.25 million, including $846,405 in restitution, a $2.5 million civil penalty against Kantor and the associated corporate entities, and a $300,000 penalty against Mullins. Kantor was also ordered to disgorge $515,759 in ill-gotten gains, while Mullins must disgorge $89,574. Blue Wolf Sales Consultants, owned by Kantor, was ordered to disgorge $463,097.
The CFTC’s investigation revealed that Kantor, Blue Bit Analytics, and G. Thomas Client Services acted as unregistered Futures Commission Merchants. The order permanently enjoins all defendants from violating the Commodity Exchange Act.
In a related criminal case, Kantor pleaded guilty to conspiracy to commit wire fraud and obstruction of an investigation. He was sentenced to 86 months of incarceration. The CFTC filed the initial enforcement case on April 16, 2018.
The CFTC cautions that victims may not fully recover their losses, as wrongdoers may lack sufficient assets. The agency stated it will continue to pursue cases to protect customers and hold fraudsters accountable. The CFTC collaborated with the U.S. Attorney’s Office for the Eastern District of New York, the FBI, and IRS Criminal Investigation on the case.
Source: CFTC.gov
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