

The United State’s CFTC has revealed that it had busted a $7 million BTC and ETH Ponzi scheme. Vista Network Technologies, a California-based company, had solicited $7 million from mislead traders. Armen Temurian, the firm’s Chief Executive falsely marketed the scheme and ran it from September 2017 till January 2018.
The press release from this Thursday details that Vista ran a classic Ponzi scheme, in which clients’ funds were misappropriated, and were used to pay older clients of the scheme, furthering the pyramid scheme.
Temurian’s company claimed that it used “Robot Traders” for BTC and ETH trading, while also promising a 2.5% daily return to its customers. However, it was obvious that the firm never actually engaged in trading, and all the clients’ assets were never used for such practices. There wasn’t even a real trading program or plan in action.
The Commodity Futures Trading Commission (CFTC) is currently working towards reimbursement strategies, as it has been collecting all stolen assets from Vista. Currently, Temurian is yet to be tried, and civil penalties are still in the talks. The regulators wishes to impose permanent registration and trading bans on Vista.
The CFTC is one of the most active regulators in the industry, that deals with both local US issues, and at times cooperates with international authorities to bring down major financial crime culprits.