CFTC obtains entry of default against binary options and crypto scammer Blake Kantor

The United States Commodity Futures Trading Commission (CFTC) has managed to secure a clerk’s entry of default against a number of entities targeted in a binary options and cryptocurrency fraud case. This happens about two weeks after the US regulator filed its request for a certificate of default against Blue Bit Analytics, Ltd., Blue Bit Banc, Blue Wolf Sales Consultants, G. Thomas Client Services, Blake Harrison Kantor, Mercury Cove, Inc., and Nathan Mullins.

Earlier today, a clerk of the New York Eastern District Court said that, appearing from the docket maintained in this action that the defendants have failed to appear or otherwise defend this action, the defaults of defendants Blue Bit Analytics, Ltd., Blue Bit Banc, Blue Wolf Sales Consultants, G. Thomas Client Services, Blake Harrison Kantor, Mercury Cove, Inc., and Nathan Mullins are hereby noted pursuant to Rule 55a of the Federal Rules of Civil Procedure.

On April 16, 2018, the CFTC filed its Complaint against individual defendants Kantor and Mullins and corporate defendants Blue Bit, Analytics, G. Thomas and Mercury Cove, as well as relief defendant Blue Wolf seeking injunctive and other equitable relief for violations of certain provisions of the Commodity Exchange Act and Commission Regulations.

The CFTC Complaint alleges that since at least April 2014 and continuing to the present, the defendants have solicited potential customers through emails, phone calls, and a website to purchase illegal off-exchange binary options via companies such as Blue Bit Banc. The defendants sought to cover up their misappropriation by inviting customers to transfer their binary options account balances into a virtual currency known as ATM Coin.

In a related action, the United States Government is seeking a heavy prison sentence for Blake Kantor, who has pleaded guilty to criminal charges of wire fraud based upon his fraudulent binary options and cryptocurrency scheme.