Control Finance Hack

A massive Ponzi scheme was revealed on the Bitcoin chain. Control Finance was fraudulently promoted as a cryptocurrency investment company.

The regulator filed an enforcement action complaint against the United Kingdom-based company and its director for “fraudulently obtaining and misappropriating” at least 22,858.822  Bitcoin, then worth $147 million. Per the complaint, the scam has victimized over 1,000 customers.

The allegedly fraudulent entity claimed that the investors would receive daily trading profits of 1.5 percent and up to 45 percent in monthly profits. It also claimed to have used risk diversification methods to protect customers’ Bitcoin deposits.

However, the US regulator found out that the company did not make a single trade with the collected funds. To deceive the victims, it projected fake balances on their accounts and also published reports with false data.