The Commodity Futures Trading Commission charges two Florida men for multi-million dollar bitcoin fraud
The Commodity Futures Trading Commission (CFTC) has charged Randy Craig Levine and Philip Reichenthal, accusing Reichenthal of using his position as an attorney to deceive investors. Here are the key points:
- Levine and Reichenthal persuaded investors to send $5.3 million to buy bitcoin from Levine.
- Reichenthal posed as an escrow agent and assured investors that their funds would be held in trust until they received their bitcoin.
- Reichenthal transferred the funds to Levine, but investors did not receive any bitcoin.
- Both Levine and Reichenthal settled with the CFTC, agreeing to pay just over $5 million in restitution.
- Levine and Reichenthal also faced criminal charges and pleaded guilty in the Southern District of New York last year.
Crypto fraud on the rise
CFTC Commissioner Kristin Johnson stated that crypto-related fraud has become increasingly common. Here’s what she had to say:
- Fraudsters exploit retail customers’ fear of missing out on new asset classes to carry out scams.
- Individuals’ interest in accessing novel asset classes makes them vulnerable to fraud.
Hot Take
This case highlights the need for investor caution when dealing with cryptocurrency. Scammers will take advantage of any opportunity, even using deceitful tactics and exploiting trusted professions like law, to defraud unsuspecting individuals. It’s crucial for investors to thoroughly research and verify the legitimacy of any investment opportunity in the crypto space.
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