Prosecutors Expect Guilty Plea from Alleged $7m Crypto Fraudster

Finance is a world full of ups and downs. For every penny earned, there is always the risk of losing five more of them. Now, finance has had a drastic facelift with the introduction of Crypto-currency. Altcoins like bitcoin cash and Ethereum have entered the game and are playing well. Innovative technology like blockchain and peer to peer transparent networks have brought a newer and stronger level of security. But the problems such as price volatility and value fluctuation become major issues. And the worst happens when greed and human error mix to produce disastrous outcomes. Such a case has come into the eye of the media where a fraudster has duped its clients of 7 million dollars in crypto-currency.

Details of the case

The deed was done by one crypto-currency based firm. He operated phony monetary exchange services. The firm was responsible for duping its clients of millions of dollars (seven million dollars to be exact). Two of their unfortunate customers found themselves in these crypto tangles, which have sued the firm. The accused is going to plead guilty and is looking at years of prison time. The firm is said to accept a plea deal that is going to be carried out in September of the year 2020. The prosecutors are looking to finalize and implement proceedings on this date.

The prosecution letter indicated that the disposition of the case is sought by both parties, and the request for a decision date in the next two months of this year has been sent to the courthouse. The last update by the accused’s lawyer has assured that all groups involved have substantially gravitated towards a mutually agreed upon disposition.

Counts of fraud

The conman was arrested in early September of 2019. The financial services provided through his company have been embroiled in four cases of dishonesty claims related in its crypto-currency dealings. The allegations entailed that Thompson had acquired three million dollars by a client to purchase bitcoin cash and had wired the sum to a separate middle-man without receiving the crypto-currency beforehand. This had apparently resulted in the accused losing the money, which had started the whole conflict.

This action was repeated by the accused when he again acquired four million dollars from another firm by lying about the previous transactions. These four million dollars was again given to another middle-man with the client’s intent to exchange it for bitcoins. But the funds were lost similarly to the previous transaction.

All these shady businesses had accumulated two claims of illegal finance practices, which each entails ten years of prison time while also committing two claims of illegal monetary transfer. These two additional counts each cause two score years of prison time.

The accused thus faces more than fifty years of incarceration but presently has been released on bail of five hundred thousand dollars after being arrested in Pennsylvania.

The official financial claims department has charged the accused’s company for the frauds committed. An Irish firm by the name of Symphony FS has also filed a separate lawsuit against Thompson, who had given him the second four million dollars that had been duped.

Crypto-currency has been a new avenue full of possibilities and opportunities to blaze the finance industry with the new light of security and safe investments. Exceptions like this should not be the reason to lose hope. The Crypto-currency industry is set to be the next big thing in various spheres of business and services. As with any such ventures, serious steps should be taken in caution, and investments should be made carefully.

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