Control Finance Scheme - Revision history

Azoundria at 16:30, 14 April 2023

2023-04-14T16:30:40Z

← Older revision		Revision as of 10:30, 14 April 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/controlfinancescheme.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/controlfinancescheme.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	[[File:Controlfinance.jpg\|thumb\|Control Finance]]Control Finance was a multi-level ponzi scheme which was operated by a fictional Benjamin Reynolds. As in a typical ponzi, this scheme used the funds of new investors to pay out old investors. It claimed that the invested funds were being used to perform intelligent trades, which is a common ponzi scheme claim.		[[File:Controlfinance.jpg\|thumb\|Control Finance]]Control Finance was a multi-level ponzi scheme which was operated by a fictional Benjamin Reynolds. As in a typical ponzi, this scheme used the funds of new investors to pay out old investors. It claimed that the invested funds were being used to perform intelligent trades, which is a common ponzi scheme claim.
Line 6:		Line 6:
	Investors were given no visibility into the backing of funds or the identity of the scheme owners, and the scheme collapsed with their funds. It is unlikely that affected users will get any funds back, since the actual operators of the scheme are unknown.		Investors were given no visibility into the backing of funds or the identity of the scheme owners, and the scheme collapsed with their funds. It is unlikely that affected users will get any funds back, since the actual operators of the scheme are unknown.

	This exchange or platform is based in United Kingdom, or the incident targeted people primarily in United Kingdom.		This exchange or platform is based in United Kingdom, or the incident targeted people primarily in United Kingdom.<ref name="slowmisthacked-1160" /><ref name="steemit-2313" /><ref name="behindmlm-2314" /><ref name="financemagnates-2315" /><ref name="reddit-2316" /><ref name="coingeek-2317" /><ref name="newmanshapiro-2318" /><ref name="theblockcrypto-2319" /><ref name="cftc-2320" /><ref name="behindmlm-2321" /><ref name="behindmlm-2322" /><ref name="behindmlm-2323" />
	<ref name="slowmisthacked-1160" /><ref name="steemit-2313" /><ref name="behindmlm-2314" /><ref name="financemagnates-2315" /><ref name="reddit-2316" /><ref name="coingeek-2317" /><ref name="newmanshapiro-2318" /><ref name="theblockcrypto-2319" /><ref name="cftc-2320" /><ref name="behindmlm-2321" /><ref name="behindmlm-2322" /><ref name="behindmlm-2323" />

	== About Control Finance ==		== About Control Finance ==
Line 69:		Line 68:
	!Description		!Description
	\|-		\|-
	\|September 7th, 2017 ~~12:00:00 AM~~		\|September 7th, 2017
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
Line 96:		Line 95:
	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
	== Prevention Policies ==
	Greater education for the public would be of huge benefit. There has yet to be found any algorithm which can consistently beat the market, and if such were found, the market would reflect the price fairly quickly.		Greater education for the public would be of huge benefit. There has yet to be found any algorithm which can consistently beat the market, and if such were found, the market would reflect the price fairly quickly.

	Were the industry able to be regulated in a lightweight manner, it would ensure that investors would be able to participate above-ground, where identities could be known and the backing of funds could be validated. When there are large barriers to fundraise or participate in investing, it creates an opportunity for underground activity, which leads to many investors expecting this.		Were the industry able to be regulated in a lightweight manner, it would ensure that investors would be able to participate above-ground, where identities could be known and the backing of funds could be validated. When there are large barriers to fundraise or participate in investing, it creates an opportunity for underground activity, which leads to many investors expecting this.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

			== Platform Prevention Policies ==
			{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

			{{Prevention:Regulators:End}}

	== References ==		== References ==
	<references><ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25, 2021)</ref>		<references><ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 26, 2021)</ref>

	<ref name="steemit-2313">[https://steemit.com/control/@amadeualexandre/how-to-get-control-finance-owners How to get Control Finance Owners — Steemit] (Aug 8, 2021)</ref>		<ref name="steemit-2313">[https://steemit.com/control/@amadeualexandre/how-to-get-control-finance-owners How to get Control Finance Owners — Steemit] (Aug 9, 2021)</ref>

	<ref name="behindmlm-2314">[https://behindmlm.com/mlm-reviews/control-finance-review-crypto-trading-1-5-daily-ponzi-scheme/ Control Finance Review: Crypto Trading 1.5% daily Ponzi scheme] (Aug 8, 2021)</ref>		<ref name="behindmlm-2314">[https://behindmlm.com/mlm-reviews/control-finance-review-crypto-trading-1-5-daily-ponzi-scheme/ Control Finance Review: Crypto Trading 1.5% daily Ponzi scheme] (Aug 9, 2021)</ref>

	<ref name="financemagnates-2315">[https://www.financemagnates.com/cryptocurrency/news/cftc-hits-mastermind-of-control-finance-bitcoin-scam-with-570m-fine/ CFTC Hits Mastermind of Control-Finance Scam with $570M Fine] (Aug 8, 2021)</ref>		<ref name="financemagnates-2315">[https://www.financemagnates.com/cryptocurrency/news/cftc-hits-mastermind-of-control-finance-bitcoin-scam-with-570m-fine/ CFTC Hits Mastermind of Control-Finance Scam with $570M Fine] (Aug 9, 2021)</ref>

	<ref name="reddit-2316">[https://www.reddit.com/r/Bitcoin/comments/6zsrjb/control_finance_is_down_120_million_vanishes_as/ Control Finance is down, $120 million vanishes as company closes website and all social media. : Bitcoin] (Aug 8, 2021)</ref>		<ref name="reddit-2316">[https://www.reddit.com/r/Bitcoin/comments/6zsrjb/control_finance_is_down_120_million_vanishes_as/ Control Finance is down, $120 million vanishes as company closes website and all social media. : Bitcoin] (Aug 9, 2021)</ref>

	<ref name="coingeek-2317">[https://coingeek.com/us-court-orders-uk-man-behind-control-finance-scam-to-pay-572m/ US court orders UK man behind Control-Finance scam to pay $572M - CoinGeek] (Aug 8, 2021)</ref>		<ref name="coingeek-2317">[https://coingeek.com/us-court-orders-uk-man-behind-control-finance-scam-to-pay-572m/ US court orders UK man behind Control-Finance scam to pay $572M - CoinGeek] (Aug 9, 2021)</ref>

	<ref name="newmanshapiro-2318">[https://newmanshapiro.com/federal-court-judge-orders-benjamin-reynolds-control-finance-ltd-to-pay-571-million-for-bitcoin-fraud-of-1000-people-including-169-in-u-s/ Federal Court Judge orders Benjamin Reynolds Control-Finance Ltd. to pay $571 million for Bitcoin fraud of 1000 people including 169 in U.S. - Newman & Shapiro] (Aug 8, 2021)</ref>		<ref name="newmanshapiro-2318">[https://newmanshapiro.com/federal-court-judge-orders-benjamin-reynolds-control-finance-ltd-to-pay-571-million-for-bitcoin-fraud-of-1000-people-including-169-in-u-s/ Federal Court Judge orders Benjamin Reynolds Control-Finance Ltd. to pay $571 million for Bitcoin fraud of 1000 people including 169 in U.S. - Newman & Shapiro] (Aug 9, 2021)</ref>

	<ref name="theblockcrypto-2319">[https://www.theblockcrypto.com/linked/99609/owner-control-finance-cftc-bitcoin Owner of bitcoin trading scheme Control-Finance ordered to pay $572 million] (Aug 8, 2021)</ref>		<ref name="theblockcrypto-2319">[https://www.theblockcrypto.com/linked/99609/owner-control-finance-cftc-bitcoin Owner of bitcoin trading scheme Control-Finance ordered to pay $572 million] (Aug 9, 2021)</ref>

	<ref name="cftc-2320">[https://www.cftc.gov/PressRoom/PressReleases/8371-21 Federal Court Orders UK Man to Pay More Than $571 Million for Operating Fraudulent Bitcoin Trading Scheme \| CFTC] (Aug 8, 2021)</ref>		<ref name="cftc-2320">[https://www.cftc.gov/PressRoom/PressReleases/8371-21 Federal Court Orders UK Man to Pay More Than $571 Million for Operating Fraudulent Bitcoin Trading Scheme \| CFTC] (Aug 9, 2021)</ref>

	<ref name="behindmlm-2321">[https://behindmlm.com/companies/cftc-abandons-fraud-case-against-control-finance/ CFTC abandons fraud case against Control Finance] (Aug 8, 2021)</ref>		<ref name="behindmlm-2321">[https://behindmlm.com/companies/cftc-abandons-fraud-case-against-control-finance/ CFTC abandons fraud case against Control Finance] (Aug 9, 2021)</ref>

	<ref name="behindmlm-2322">[https://behindmlm.com/companies/control-finances-benjamin-reynolds-is-karl-joonatan-mets/ Control Finance's Benjamin Reynolds is Karl-Joonatan Mets] (Aug 8, 2021)</ref>		<ref name="behindmlm-2322">[https://behindmlm.com/companies/control-finances-benjamin-reynolds-is-karl-joonatan-mets/ Control Finance's Benjamin Reynolds is Karl-Joonatan Mets] (Aug 9, 2021)</ref>

	<ref name="behindmlm-2323">[https://behindmlm.com/companies/how-control-finance-scammers-duped-karl-joonatan-mets/ How Control Finance scammers duped Karl-Joonatan Mets] (Aug 8, 2021)</ref></references>		<ref name="behindmlm-2323">[https://behindmlm.com/companies/how-control-finance-scammers-duped-karl-joonatan-mets/ How Control Finance scammers duped Karl-Joonatan Mets] (Aug 9, 2021)</ref></references>

Azoundria at 17:25, 16 February 2023

2023-02-16T17:25:47Z

← Older revision		Revision as of 11:25, 16 February 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/controlfinancescheme.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/controlfinancescheme.php}}
			{{Unattributed Citations}}

	[[File:Controlfinance.jpg\|thumb\|Control Finance]]Control Finance was a multi-level ponzi scheme which was operated by a fictional Benjamin Reynolds. As in a typical ponzi, this scheme used the funds of new investors to pay out old investors. It claimed that the invested funds were being used to perform intelligent trades, which is a common ponzi scheme claim.		[[File:Controlfinance.jpg\|thumb\|Control Finance]]Control Finance was a multi-level ponzi scheme which was operated by a fictional Benjamin Reynolds. As in a typical ponzi, this scheme used the funds of new investors to pay out old investors. It claimed that the invested funds were being used to perform intelligent trades, which is a common ponzi scheme claim.
Line 6:		Line 7:

	This exchange or platform is based in United Kingdom, or the incident targeted people primarily in United Kingdom.		This exchange or platform is based in United Kingdom, or the incident targeted people primarily in United Kingdom.
			<ref name="slowmisthacked-1160" /><ref name="steemit-2313" /><ref name="behindmlm-2314" /><ref name="financemagnates-2315" /><ref name="reddit-2316" /><ref name="coingeek-2317" /><ref name="newmanshapiro-2318" /><ref name="theblockcrypto-2319" /><ref name="cftc-2320" /><ref name="behindmlm-2321" /><ref name="behindmlm-2322" /><ref name="behindmlm-2323" />

	== About Control Finance ==		== About Control Finance ==
Line 47:		Line 49:

	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
Line 69:		Line 70:
	\|-		\|-
	\|September 7th, 2017 12:00:00 AM		\|September 7th, 2017 12:00:00 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
Line 82:		Line 79:

	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $147,000,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Line 93:		Line 90:

	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ recovered.		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
Line 106:		Line 103:

	== References ==		== References ==
	[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25)		<references><ref name="slowmisthacked-1160">[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25, 2021)</ref>

	[https://steemit.com/control/@amadeualexandre/how-to-get-control-finance-owners How to get Control Finance Owners — Steemit] (Aug 8)		<ref name="steemit-2313">[https://steemit.com/control/@amadeualexandre/how-to-get-control-finance-owners How to get Control Finance Owners — Steemit] (Aug 8, 2021)</ref>

	[https://behindmlm.com/mlm-reviews/control-finance-review-crypto-trading-1-5-daily-ponzi-scheme/ Control Finance Review: Crypto Trading 1.5% daily Ponzi scheme] (Aug 8)		<ref name="behindmlm-2314">[https://behindmlm.com/mlm-reviews/control-finance-review-crypto-trading-1-5-daily-ponzi-scheme/ Control Finance Review: Crypto Trading 1.5% daily Ponzi scheme] (Aug 8, 2021)</ref>

	[https://www.financemagnates.com/cryptocurrency/news/cftc-hits-mastermind-of-control-finance-bitcoin-scam-with-570m-fine/ CFTC Hits Mastermind of Control-Finance Scam with $570M Fine] (Aug 8)		<ref name="financemagnates-2315">[https://www.financemagnates.com/cryptocurrency/news/cftc-hits-mastermind-of-control-finance-bitcoin-scam-with-570m-fine/ CFTC Hits Mastermind of Control-Finance Scam with $570M Fine] (Aug 8, 2021)</ref>

	[https://www.reddit.com/r/Bitcoin/comments/6zsrjb/control_finance_is_down_120_million_vanishes_as/ Control Finance is down, $120 million vanishes as company closes website and all social media. : Bitcoin] (Aug 8)		<ref name="reddit-2316">[https://www.reddit.com/r/Bitcoin/comments/6zsrjb/control_finance_is_down_120_million_vanishes_as/ Control Finance is down, $120 million vanishes as company closes website and all social media. : Bitcoin] (Aug 8, 2021)</ref>

	[https://coingeek.com/us-court-orders-uk-man-behind-control-finance-scam-to-pay-572m/ US court orders UK man behind Control-Finance scam to pay $572M - CoinGeek] (Aug 8)		<ref name="coingeek-2317">[https://coingeek.com/us-court-orders-uk-man-behind-control-finance-scam-to-pay-572m/ US court orders UK man behind Control-Finance scam to pay $572M - CoinGeek] (Aug 8, 2021)</ref>

	[https://newmanshapiro.com/federal-court-judge-orders-benjamin-reynolds-control-finance-ltd-to-pay-571-million-for-bitcoin-fraud-of-1000-people-including-169-in-u-s/ Federal Court Judge orders Benjamin Reynolds Control-Finance Ltd. to pay $571 million for Bitcoin fraud of 1000 people including 169 in U.S. - Newman & Shapiro] (Aug 8)		<ref name="newmanshapiro-2318">[https://newmanshapiro.com/federal-court-judge-orders-benjamin-reynolds-control-finance-ltd-to-pay-571-million-for-bitcoin-fraud-of-1000-people-including-169-in-u-s/ Federal Court Judge orders Benjamin Reynolds Control-Finance Ltd. to pay $571 million for Bitcoin fraud of 1000 people including 169 in U.S. - Newman & Shapiro] (Aug 8, 2021)</ref>

	[https://www.theblockcrypto.com/linked/99609/owner-control-finance-cftc-bitcoin Owner of bitcoin trading scheme Control-Finance ordered to pay $572 million] (Aug 8)		<ref name="theblockcrypto-2319">[https://www.theblockcrypto.com/linked/99609/owner-control-finance-cftc-bitcoin Owner of bitcoin trading scheme Control-Finance ordered to pay $572 million] (Aug 8, 2021)</ref>

	[https://www.cftc.gov/PressRoom/PressReleases/8371-21 Federal Court Orders UK Man to Pay More Than $571 Million for Operating Fraudulent Bitcoin Trading Scheme \| CFTC] (Aug 8)		<ref name="cftc-2320">[https://www.cftc.gov/PressRoom/PressReleases/8371-21 Federal Court Orders UK Man to Pay More Than $571 Million for Operating Fraudulent Bitcoin Trading Scheme \| CFTC] (Aug 8, 2021)</ref>

	[https://behindmlm.com/companies/cftc-abandons-fraud-case-against-control-finance/ CFTC abandons fraud case against Control Finance] (Aug 8)		<ref name="behindmlm-2321">[https://behindmlm.com/companies/cftc-abandons-fraud-case-against-control-finance/ CFTC abandons fraud case against Control Finance] (Aug 8, 2021)</ref>

	[https://behindmlm.com/companies/control-finances-benjamin-reynolds-is-karl-joonatan-mets/ Control Finance's Benjamin Reynolds is Karl-Joonatan Mets] (Aug 8)		<ref name="behindmlm-2322">[https://behindmlm.com/companies/control-finances-benjamin-reynolds-is-karl-joonatan-mets/ Control Finance's Benjamin Reynolds is Karl-Joonatan Mets] (Aug 8, 2021)</ref>

	[https://behindmlm.com/companies/how-control-finance-scammers-duped-karl-joonatan-mets/ How Control Finance scammers duped Karl-Joonatan Mets] (Aug 8)		<ref name="behindmlm-2323">[https://behindmlm.com/companies/how-control-finance-scammers-duped-karl-joonatan-mets/ How Control Finance scammers duped Karl-Joonatan Mets] (Aug 8, 2021)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/controlfinancescheme.php}} Control FinanceControl Finance was a multi-level ponzi scheme which was operated by a fictional Benjamin Reynolds. As in a typical ponzi, this scheme used the funds of new investors to pay out old investors. It claimed that the invested funds were being used to perform intelligent trades, which is a common ponzi scheme claim. Investors..."

2023-01-24T20:57:47Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/controlfinancescheme.php}} thumb|Control FinanceControl Finance was a multi-level ponzi scheme which was operated by a fictional Benjamin Reynolds. As in a typical ponzi, this scheme used the funds of new investors to pay out old investors. It claimed that the invested funds were being used to perform intelligent trades, which is a common ponzi scheme claim. Investors..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/controlfinancescheme.php}}

[[File:Controlfinance.jpg|thumb|Control Finance]]Control Finance was a multi-level ponzi scheme which was operated by a fictional Benjamin Reynolds. As in a typical ponzi, this scheme used the funds of new investors to pay out old investors. It claimed that the invested funds were being used to perform intelligent trades, which is a common ponzi scheme claim.

Investors were given no visibility into the backing of funds or the identity of the scheme owners, and the scheme collapsed with their funds. It is unlikely that affected users will get any funds back, since the actual operators of the scheme are unknown.

This exchange or platform is based in United Kingdom, or the incident targeted people primarily in United Kingdom.

== About Control Finance ==
"Control Finance was an investment [company]." "Control Finance provide[d] no information on their website about who owns or runs the business", however "[e]very Control Finance members [apparently] knew that the company was created in United Kingdom by someone who claim to be called Benjamin Reynolds." "UK Companies House incorporation documents are provided on the Control Finance website, showing an incorporation date of September 8th, 2016." "The Control Finance corporate address provided belongs to Bruntwood, who sell virtual office space. As such it appears Control Finance exists in the UK in name only." "The sole Director of the company is Benjamin Reynolds, who is also the listed owner of the Control Finance website domain (registered September 6th, 2016)."

"The fraudulent scheme operated between May and September 2017, advertising profits from a trading pool that never actually generated any returns." "Control Finance marketing videos on the company website feature a speaker with a distinct Eastern European accent. In the videos the speaker reads marketing copy present on the Control Finance website." "Control Finance has no retailable products or services, with affiliates only able to market Control Finance affiliate membership itself." "In order to extract bitcoin from investors, Control-Finance lured them with promises of guaranteed 1.5 percent a day, or 45 percent a month, which they described in weekly fabricated trade reports."

"Control Finance disappeared with approximately $120.000.000 on September 7, 2017. At least that was the date by when the members stopped receiving payments allegedly due to a DDoS attack." "While Reynolds represented that he would return all bitcoin deposits to customers of Control-Finance by late October 2017, he never did and instead retained the deposits for his own personal use. Customers lost most or all of their bitcoin deposits as a result of the scheme." "[T]he fictional CEO obtained and misappropriated more than 22,800 bitcoin (worth more than $1.24 billion) from more than 1,000 customers." "Authorities said the man lured in at least 1,000 investors, over 100 of whom were U.S. citizens to invest in its bogus BTC products. The CFTC said Reynolds made away with 22,858 BTC which at the time was worth $147 million. This stash is currently worth $1.3 billion."

"Reynolds falsely represented to customers that Control-Finance traded their bitcoin deposits in virtual currency markets and employed specialized virtual currency traders who generated guaranteed trading profits for all customers." "In fact, Reynolds made no trades on customers’ behalf, earned no trading profits for them, and paid them no referral rewards or bonuses." "Investigators said Reynolds initially operated Control-Finance like a Ponzi scheme, paying off existing investors with money he collected from the new investors. The model, however, proved unsustainable as new clients dried up, which resulted in Reynolds closing shop and vanishing with his investors’ funds, according to authorities." "After he fled, the CFTC began tracking him to serve him, to no avail. It hired U.K solicitors to serve Reynold at the address he had listed on his site but he no longer lived there. Attempts to serve him via email and phone also failed."

"On June 18,2019, the US Commodity Futures Trading Commission (CFTC) announced it had initiated a civil enforcement action against a now-defunct cryptocurrency trading and investment company for misappropriating $147 million worth of Bitcoin." "The US Commodity Futures Trading Commission accuses Reynolds of running a pyramid scheme" "The Complaint charges the defendants—Control-Finance Limited and its principal, Benjamin Reynolds—with exploiting public enthusiasm for crypto assets by fraudulently obtaining and misappropriating at least 22,858.822 Bitcoin from more than 1,000 customers through a classic (HYIP) Ponzi scheme called the Control-Finance Affiliate Program." "A federal court in the United States has ordered [Reynolds] to pay $572 million in restitution and civil monetary penalties[.]" "The court found that the Manchester, England native “operated a fraudulent scheme to solicit bitcoin from members of the public and misappropriated customers’ bitcoin.”"

"The court ruled that Reynolds must pay $143 million in restitution to the customers he defrauded. He must also pay $429 million in civil monetary penalty. The order also permanently enjoins him from engaging in conduct that violates CFTC regulations or trading in any CFTC-regulated markets."

"[T]he CFTC didn’t seem to know exactly where Reynolds was, saying in a press statement that he was “purportedly” living in Manchester, England." "The judgement was issued by Mary Kay Vyskocil, a judge in the US District Court for the Southern District of New York. Vyskocil wrote that Reynolds had “failed to appear or answer the Complaint.”"

"While the default judgment marks a victory for the CFTC, there’s no guarantee that the victims will get refunded, the watchdog cautioned. “The CFTC cautions victims that restitution orders may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure wrongdoers are held accountable,” it stated."

"The CFTC’s case relied on UK Companies House data which, not surprisingly, turned out to be fraudulent." In 2020, "[t]he CFTC has dropped their case against Control Finance. On April 6th the court accepted the FTC’s motion to voluntarily dismiss Control Finance as a defendant. Emphasizing the absurdity of the case, Control Finance’s fictional CEO Benjamin Reynolds is still an active defendant. Following his failure to respond to the case, the court clerk recorded an entry of default against Reynolds on April 6th. Given the CFTC has been thus far unable to trace who ran Control Finance, to what end pursuing default judgment against Reynolds benefits anyone is unclear."

"Control Finance CEO Benjamin Reynolds [was allegedly] outed as Estonian resident Karl-Joonatan Mets." "Karl-Joonatan Mets is a young man from and living in Estonia. Over the last decade he’s made a name for himself as a stand-up comedian and poker player." "The last video on Mets’ channel is dated July 12th, right about the time Control Finance launched."

"Based on information provided to BehindMLM after publication of th[at] article, [they now] believe Karl-Joonatan Mets was innocently hired by an Estonian/Russian production agency."

"Based on BehindMLM’s own research, we have concluded that this production agency was working with and continues to work on behalf of Russian scammers." "Mets professes his innocence, which fits with typically Russian scammers hiring actors to front their scams." "The video was shot in a rented office set with Control Finance branding. Mets played an office worker." "He read a script talking about company updates and other related marketing points. The script didn’t call of Mets to identify himself as Benjamin Reynolds." "Mets was paid €750 EUR for his work, with more videos to come."

This exchange or platform is based in United Kingdom, or the incident targeted people primarily in United Kingdom.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Control Finance Scheme
!Date
!Event
!Description
|-
|September 7th, 2017 12:00:00 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
Greater education for the public would be of huge benefit. There has yet to be found any algorithm which can consistently beat the market, and if such were found, the market would reflect the price fairly quickly.

Were the industry able to be regulated in a lightweight manner, it would ensure that investors would be able to participate above-ground, where identities could be known and the backing of funds could be validated. When there are large barriers to fundraise or participate in investing, it creates an opportunity for underground activity, which leads to many investors expecting this.

== References ==
[https://hacked.slowmist.io/en/?c=Exchange SlowMist Hacked - SlowMist Zone] (Jun 25)

[https://steemit.com/control/@amadeualexandre/how-to-get-control-finance-owners How to get Control Finance Owners — Steemit] (Aug 8)

[https://behindmlm.com/mlm-reviews/control-finance-review-crypto-trading-1-5-daily-ponzi-scheme/ Control Finance Review: Crypto Trading 1.5% daily Ponzi scheme] (Aug 8)

[https://www.financemagnates.com/cryptocurrency/news/cftc-hits-mastermind-of-control-finance-bitcoin-scam-with-570m-fine/ CFTC Hits Mastermind of Control-Finance Scam with $570M Fine] (Aug 8)

[https://www.reddit.com/r/Bitcoin/comments/6zsrjb/control_finance_is_down_120_million_vanishes_as/ Control Finance is down, $120 million vanishes as company closes website and all social media. : Bitcoin] (Aug 8)

[https://coingeek.com/us-court-orders-uk-man-behind-control-finance-scam-to-pay-572m/ US court orders UK man behind Control-Finance scam to pay $572M - CoinGeek] (Aug 8)

[https://newmanshapiro.com/federal-court-judge-orders-benjamin-reynolds-control-finance-ltd-to-pay-571-million-for-bitcoin-fraud-of-1000-people-including-169-in-u-s/ Federal Court Judge orders Benjamin Reynolds Control-Finance Ltd. to pay $571 million for Bitcoin fraud of 1000 people including 169 in U.S. - Newman & Shapiro] (Aug 8)

[https://www.theblockcrypto.com/linked/99609/owner-control-finance-cftc-bitcoin Owner of bitcoin trading scheme Control-Finance ordered to pay $572 million] (Aug 8)

[https://www.cftc.gov/PressRoom/PressReleases/8371-21 Federal Court Orders UK Man to Pay More Than $571 Million for Operating Fraudulent Bitcoin Trading Scheme | CFTC] (Aug 8)

[https://behindmlm.com/companies/cftc-abandons-fraud-case-against-control-finance/ CFTC abandons fraud case against Control Finance] (Aug 8)

[https://behindmlm.com/companies/control-finances-benjamin-reynolds-is-karl-joonatan-mets/ Control Finance's Benjamin Reynolds is Karl-Joonatan Mets] (Aug 8)

[https://behindmlm.com/companies/how-control-finance-scammers-duped-karl-joonatan-mets/ How Control Finance scammers duped Karl-Joonatan Mets] (Aug 8)