BlueBitBanc Pleads Guilty in New York Federal Court for Indulging in Crypto-Scam and Binary Options Frauds

New York Federal Court had instructed the renowned binary options, cryptocurrency platform Blue Bit Banc, Blake Kantor to take websites down for indulging fraudulent activities.

While the CFTC had also secured a preliminary injunction against a number of individuals and firms engaged in a fraudulent scheme involving binary options and digital currencies.

Blake Kantor, who is the CEO formerly operated a binary options company known as Blue Bit Banc and Blue Bit Analytics (“BBB”), pleaded guilty to conspire the binary options scam and also involved a crypto fraud scheme. 

With an intention of covering their tracks, the CEO misguided clients to translate their binary option investments into ATM Coin cryptocurrency, that seemed to be “a worthless cryptocurrency he had deceptively advocated investors to stay invested in for an abundant yield”.

The case was running since 2014, as part of his plea agreement, Kantor admitted to obstructing an investigation into his fraudulent scheme. When he is sentenced, Kantor faces up to 20 years in prison, as well as restitution, criminal forfeiture and a fine. The guilty plea was entered before United States Magistrate Judge Gary R. Brown.

William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), and James McDonald, Director, Division of Enforcement, U.S. Commodity Futures Trading Commission (CFTC), confirmed the guilty plea.

Currency Strength Index: FxWirePro's hourly BTC spot index is flashing at -185 levels (which is bearish), hourly USD spot index was at -43 (bearish) while articulating at (12:21 GMT). 

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