Jon Barry Thompson of Easton, Pennsylvania, has been charged with fraud by the U.S. Commodity Futures Trading Commission (CFTC), stemming from a scheme involving over $7 million in misappropriated funds intended for Bitcoin purchases. The complaint, filed in the United States District Court for the Southern District of New York, alleges Thompson knowingly misled customers about possessing Bitcoin he intended to deliver.
According to the CFTC, Thompson falsely claimed to have Bitcoin in hand and assured customers their funds would be safeguarded. However, the agency alleges neither Thompson nor any affiliated company ever possessed the Bitcoin promised to the two customers involved in the scheme. The $7 million received from the customers was allegedly transferred to third parties without any corresponding Bitcoin being acquired.
The fraud reportedly took place in 2018. After receiving the funds, Thompson allegedly continued to deceive the customers, providing false information regarding the location of the Bitcoin, the reasons for transaction delays, and the status of their money. The CFTC’s complaint details a pattern of misrepresentation and a failure to deliver on promises made to investors.
The CFTC is seeking restitution, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act and CFTC regulations. Simultaneously, a criminal indictment has been returned against Thompson in the Southern District of New York (United States v. Jon Barry Thompson a/k/a “J. Barry Thompson”, 19 CR 698).
The case was brought forth by the CFTC Division of Enforcement’s Virtual Currencies Task Force, highlighting the agency’s focus on combating fraud in the cryptocurrency space. The CFTC acknowledged the cooperation of the United States Attorney’s Office for the Southern District of New York and the Federal Bureau of Investigation in pursuing this matter.
Source: CFTC.gov
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