Trader Jailed and Fined Over $1 Million for Bitcoin and Litecoin Fraud Scheme

The U.S. Commodity Futures Trading Commission (CFTC) issued a press release on Friday, November 9, 2018, stating that it had fined Arizona resident Joseph Kim for perpetrating a fraudulent cryptocurrency trading scheme against his former employer and other investors. The same day, a District Court in the Northern District of Illinois sentenced Kim to 15 months on wire fraud charges.

Misappropriating Employer’s Funds

According to the release, Kim had misappropriated his employer’s funds between September and November 2017. Kim, who was employed by a Chicago-based trading firm at the time, had transferred the company’s tokens from the cryptocurrency exchange where they were kept into his wallet address.

When questioned about the illegal transfers, Kim falsely stated that the platform’s security issues were the reason why the tokens were moved. The firm discovered the misappropriation of funds in November 2017; by then, Kim had lost approximately $601,000 of the company’s funds. The company subsequently fired him.


Be the first to comment

Leave a Reply

Your email address will not be published.


*