US court orders crypto-pyramid organizers to pay more than $900,000

A US district court in Colorado ordered the local company and its executive to pay restitution and a penalty for organizing a Ponzi scheme. The CFTC reports.

Breonna Clark, also known as Eliot Clark or Alexander Pak, through her company Venture Capital Investments Ltd. fraudulently attracted investments from 72 people purportedly for trading in cryptocurrency and forex markets. On social media she promised potential clients stable returns.

“The court found that the defendant illegally misappropriated users’ funds to purchase, among other things, a luxury car,” the statement said.

Part of the funds went to payouts to early clients to sustain the fraudulent scheme. In total, the defendant misappropriated $450,302. Venture Capital Investments Ltd. and Clark must reimburse this amount to the defrauded investors.

They will also have to pay the penalty and CFTC costs of $450,302. The court barred the defendants from registering with the Commission and from trading on any markets it regulates.

In late August, the U.S. Securities and Exchange Commission uncovered a $27 million cryptocurrency pyramid scheme. The perpetrators selected African immigrants as victims.

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