Another One Bites the Dust: Federal Court Bags $2.5M Bitcoin Ponzi Scheme

[kreslik.news]

On Thursday, October 18th, a Federal Court in New York officially ordered a $2.5 million fine on Gelfman BluePrint, Inc. (GBI), and Nicholas Gelfman, the company’s CEO. GBI has been operating as a Bitcoin hedge fund since it was incorporated in 2014, and had as many as 85 users and 2,367 BTC under its management as of 2015.

The US Commodity Futures Trading Commission (CFTC) originally came after the company in September of last year. At the time, GBI told its customers that it was using an algorithm called ‘jigsaw’ to earn substantial returns on investors’ funds. It was ... (read more)