CFTC seeks default order against binary options and cryptocurrency fraudster Blake Kantor

Maria Nikolova

The US regulator requests the entry of a default against Blake Kantor, Nathan Mullins, Blue Bit Banc, Blue Bit Analytics, G. Thomas Client Services, Mercury Cove, and Blue Wolf.

The United States Commodity Futures Trading Commission (CFTC) is getting near a default win in an action targeting a range of entities involved in a binary options and cryptocurrency scam. 

On Friday, May 31, 2019, the CFTC filed a Request for Certificate of Default in the New York Eastern District Court. The CFTC seeks the entry of a default against defendants Blake Harrison Kantor aka Bill Gordon, Nathan Mullins, Blue Bit Banc, Blue Bit Analytics, Ltd., G. Thomas Client Services and Mercury Cove, Inc., as well as against relief defendant Blue Wolf Sales Consultants.

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.

As of the filing of this request, defendants Kantor, Mullins, Blue Bit, Analytics, G. Thomas, Mercury Cove and Blue Wolf have each failed to file an answer or otherwise respond.

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.

According to the US Government, the calculated nature and sophistication of his scheme belie that claim, the US Government says. In any event, the fact that Kantor organized this scheme after having served a federal prison sentence for his involvement in drug trafficking conspiracy, is a factor that, according to the Government, supports the imprisonment sentence suggested.

Moreover, the calculated nature of the defendant’s scheme is demonstrated by his actions after the FBI contacted him in connection with grand jury investigation. His initial response to the FBI agents’ inquiry was to order a co-conspirator to alter lists containing victims’ contact information to conceal his scheme. Then the defendant further obstructed the grand jury investigation by deleting emails and lying in a proffer. This obstructive behavior, the Government argues, further demonstrates that a Guidelines sentence of imprisonment is proper in this case.

The sentencing of Kantor in the criminal case against him has been recently rescheduled to June 17, 2019.

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