CFTC seeks default judgment against binary options and crypto scammer Blake Kantor
The CFTC has alleged that Kantor and the entities he operated defrauded investors of more than $618,000.
About two months after the United States Commodity Futures Trading Commission (CFTC) obtained clerk’s entry of default against Blake Harrison Kantor aka Bill Gordon, and a number of individuals and entities that are responsible for a binary options and crypto scam targeting US investors, the US regulator is now seeking a default judgment against the defendant in this case.
According to documents filed by the CFTC with the New York Eastern District Court on Monday, Septemebr 16, 2019, the US regulator is requesting that the Court issues final default judgment against Kantor, Nathan Mullins, Blue Bit Banc, Blue Bit Analytics, Ltd., G. Thomas Client Services and Mercury Cove, Inc and Blue Wolf Sales Consultants.
On April 16, 2018, the Commission filed a Complaint seeking emergency relief to halt ongoing fraudulent conduct in connection with a binary options and crypto trading scam. Specifically, the CFTC filed a Complaint for Injunctive and Other Equitable Relief and Penalties under the Commodity Exchange Act against Defendants, seeking injunctive and other equitable relief for violations of the 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.
The CFTC complaint charged that the defendants defrauded at least 6 individuals of at least $618,810 by fraudulently soliciting them and misappropriating their funds. The defendants evaded regulatory scrutiny and detection by failing to register in capacities required by federal law. The Complaint charges the defendants with violations of the anti-fraud provisions of the Act and Regulations in connection with commodity options and swaps, engaging in unlawful off-exchange retail swaps and commodity options transactions and failing to register as a futures commission merchant (FCM).
On June 13, 2019, the Commission obtained the clerk’s entry of default against the defendants for failure to plead or otherwise defend. The US regulator now seeks a default judgment against the defendants, including a permanent injunction and permanent trading and registration bans, and orders of restitution, disgorgement and civil monetary penalties.
