CFTC Fined for Bitcoin Theft from his company
Joseph Kim a resident of Phoenix Arizona is in an acquisition of fraud involving Bitcoin and Litecoin. According to CFTC Joseph stole the cryptocurrency from his company to pay off bad trades he had made himself. The commission announced on Friday that it issued a $1.1 million fine to Joseph for the fraud.
Joseph Kim was working for Consolidated Trading, a trading company based in Chicago when he committed the first fraud. Reports indicate that Kim took more than $3 million in Bitcoin and Litecoin from both the Consolidated Trading accounts and the Company’s clients accounts. Kim believes to use the money to pay for losses he has to incur when trading cryptocurrencies himself.
The reports also say that Kim manages to return more than $2 million from hack amount. However, the behavior aroused suspicion from the company’s superiors who confronted him for questions. When asked why he transferred the hefty sums of bitcoin and Litecoin to his account, Kim Said he did so for security purposes.
Kim lost money he had taken from his customer’s accounts force him to still more money to continue trading and pay off the losses he had made. Cryptocurrency trading counts by many traditional investors as gambling. Chances of making profits or losses are both very high. Kim, however, became apologetic when eventually his acts were within the book.
In an email to his superiors at Consolidated trading, Kim said he couldn’t believe he didn’t stop trading when he had the money to pay back. In his attempt to pay off the debt he accumulated while at Consolidated Trading, Kim lied to many clients that he is setting his own cryptocurrency trading firm.
The reports say that about five of his former clients offers over $500,000 to Kim to trade with. Kim allegedly lost the whole money while trying to trade cryptocurrency once again. As a result, he will have to pay back all of the money his ‘clients’ gave him. Moreover with amount around $600,000 to Consolidated Trading. The CFTC has also placed a permanent trading and registration ban on Kim.
Kim was under a 15-month prison sentence for the cumulative crimes for both the Consolidated trading and the obtaining money by false pretense. Kim, now 24 years old was further given a permanent trading ban. On top of the $1,146,000 fine, he is to pay to his former employer and clients.
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