US Govt is in the process of extraditing Bitcoin fraudster Renwick Haddow

Maria Nikolova

The United States Attorney’s Office for the Southern District of New York recently learned that Haddow, who is currently being held in a Moroccan jail, has consented to extradition.

The United States Securities and Exchange Commission (SEC) has provided an update to the New York Southern District Court with regard to its case against Renwick Haddow, the founder of fraudulent entities Bitcoin Store Inc. and Bar Works Inc.

On Monday, the SEC informed the Court that Haddow’s time to answer (or otherwise respond to) its complaint currently expires on January 4, 2018. However, the Commission anticipates that Haddow may seek to extend his time to answer because he is currently being held in a Moroccan jail.

In connection with the parallel criminal action against Haddow, the SEC understands that the United States government is in the process of extraditing Haddow and that the United States Attorney’s Office for the Southern District of New York recently learned that Haddow has consented to extradition.

The SEC had also pushed for default judgments against defendants Bar Works, Inc., Bar Works 7th Avenue, Inc., and Bitcoin Store, Inc., but is now determining the size of the specific civil penalty amount to be sought from each entity defendant.

The SEC’s complaint charges Haddow, Bitcoin Store, Bar Works, and another Haddow-controlled company called Bar Works 7th Avenue, Inc. with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The complaint further alleges that Haddow is liable for aiding and abetting Bitcoin Store, Bar Works, and Bar Works 7th Avenue’s violations and as a control person for the registration violations of his brokerage firm InCrowd Equity Inc.

Haddow allegedly used sales representatives to cold call potential investors and sell securities in Bitcoin Store Inc. and Bar Works Inc.

According to the SEC’s complaint, offering materials presented to investors in both companies touted the backgrounds of senior executives who do not appear to exist. The materials also misrepresented other key facts about both companies’ operations. Haddow allegedly diverted more than 80% of the funds raised by the broker-dealer for Bitcoin Store, and sent more than $4 million from the Bar Works bank accounts to one or more accounts in Mauritius and $1 million to one or more accounts in Morocco.

The case is captioned Securities and Exchange Commission v. Haddow et al (1:17-cv-04950).

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