Crackdown on Crypto Continues: CFTC Busts Cryptobravos

<p>The
Commodity Futures Trading Commission (CFTC) has filed a civil enforcement
action against individuals and entities associated with Cryptobravos. It has accused
them of a massive fraud scheme. </p><p>The
CFTC alleges that the defendants fraudulently solicited and misappropriated
tens of millions of dollars from hundreds of individuals worldwide, including
the United States, under various trading aliases.</p><p>Deceptive Tactics:
Cryptobravos' False Promises to Investors</p><p>The
CFTC filed the complaint in the US District Court for the District of New
Jersey. It has identified the defendants as Or Patreanu (Israel), Snir Hananya (Italy), Elijah Samson (Germany), Artem Prokopenko (Ukraine), and Expected
Value Plus Ltd. (a Seychelles company), all operating collectively as
Cryptobravos. </p><p>The
accused entities are known by several other trading names, including
Trade2Get, Coinbull, Cryptonxt, Tradenix, Cryptobravos, Nittrex, Pinance, and
Wobit.</p><p>The
CFTC alleges that from approximately January 2017 through October 2021, the
defendants orchestrated a global fraudulent scheme with operations in Israel,
Ukraine, Albania, South Africa, and other locations. </p><p>Their
mode of operation involved soliciting bitcoin and other funds from individuals,
with a particular focus on US customers. The funds were intended for the
establishment of managed accounts to engage in the trading of digital asset
commodities, primarily <a href="https://www.financemagnates.com/tag/bitcoin/" target="_blank" rel="follow">bitcoin</a>.</p><p>CFTC
Seeks Justice: Restitution and Penalties in Cryptobravos Case</p><p>Cryptobravos
agents falsely represented several key points to potential investors. It included
promises that the customer funds would be used for trading activities with assurances of risk-free returns and claims that customers could withdraw
their funds at any time. However, the CFTC alleges that these representations
were nothing but deceptive tactics.</p><p>In
reality, the defendants did not engage in any trading activities involving
bitcoin or other digital asset commodities for their customers. The <a href="https://www.financemagnates.com/tag/cftc/" target="_blank" rel="follow">CFTC</a> claims
that they never delivered on the promised returns. Instead, they held onto
customer funds. </p><p>In
many instances, customers were encouraged to withdraw funds from their
retirement accounts, take out loans to make additional deposits, or pay
non-existent taxes or commissions. Most customers who deposited money with
Cryptobravos have not seen their funds returned.</p><p>In
response to these allegations, the CFTC is seeking various forms of relief. It
includes restitution for victims, disgorgement of ill-gotten gains, civil
monetary penalties, permanent trading and registration bans for the accused,
and a permanent injunction against any further violations of the Commodity
<a href="https://www.financemagnates.com/terms/e/exchange/">Exchange</a> Act (CEA) and CFTC regulations.</p><p>International
Collaboration: Agencies Unite to Combat Cryptocurrency Fraud</p><p>Ian
McGinley, the Director of Enforcement at the <a href="https://www.financemagnates.com/terms/c/cftc/">CFTC</a>, emphasized the international
cooperation involved in this case, having stated: "This case is a triumph of
international cooperation. The roster of agencies who assisted the Division of
Enforcement's investigation makes it clear to fraudsters in our markets that we
will pursue them wherever they are located."</p><p>The
CFTC has acknowledged the assistance of multiple agencies worldwide in their
investigation, including the Alabama Securities Commission, Albanian Financial
Supervisory Authority, British Columbia Securities Commission, Financial
Supervision Commission of Bulgaria, <a href="https://www.financemagnates.com/tag/cysec/" target="_blank" rel="follow">Cyprus Securities and Exchange Commission</a>,
Czech National Bank, Securities and Futures Commission of Hong Kong, Central
Bank of Hungary, <a href="https://www.financemagnates.com/tag/israel-securities-authority/" target="_blank" rel="follow">Israel Securities Authority</a>, Liechtenstein Financial Market
Authority, and the <a href="https://www.financemagnates.com/tag/ontario-securities-commission/" target="_blank" rel="follow">Ontario Securities Commission</a>.</p><p>The
CFTC's Division of Enforcement is leading the case, with Michael Cazakoff, Jack
Murphy, K. Brent Tomer, Lenel Hickson Jr., and Manal M. Sultan among the staff
responsible for the prosecution. Jennifer Diamond from the Division of
Enforcement's Office of Chief Counsel also provided valuable assistance in the
investigation.</p>

This article was written by Tareq Sikder at www.financemagnates.com.