Prison sentence and large fine for cryptocurrency trader

The US crackdown on nefarious cryptocurrency traders continues…

by Manoj Sharma for CNR

The Commodity Futures Trading Commission (CFTC) in the US has issued an order against a crypto trader, Joseph Kim, requiring him to serve 15 months in prison and to pay upwards of $1.1 million over a fraudulent Bitcoin and Litecoin Scheme.

The CFTC order, issued earlier this week, specifies that Joseph Kim had misappropriated about $600,000 worth of Litecoin and BTC from his former employer. He did so through a range of transfers between his personal and company’s account, misleading the clients of the company by saying that these transfers were necessary because of “security issues”.

The Commission also discovers that Joseph’s former employer found his wrongdoing and terminated him after suffering a huge loss of $601,000. After his termination, Kim started soliciting funds from individuals, purportedly in the hope that he would repay company’s losses by using the trade profits. It’s been discovered that during December 2017 and March 2018, Kim lost a total of $545,000 in trading. Eventually, he concealed the losses by sending false statements to accounts departments.

Kim pleaded guilty and was ordered to repay the lost funds while serving 15 months behind bars.

James McDonald, Director of Enforcement at CTFC, commented that “today’s Order stands as yet another in the string of cases showing the CFTC’s commitment to actively police the virtual currency markets and protect the public interest.  In addition, the criminal indictment and sentence reaffirm the CFTC’s commitment to working in parallel with our partners at the Department of Justice to root out misconduct in these markets”.

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