Principal Of Cryptocurrency Escrow Company Charged In Manhattan Federal Court With Fraudulent Scheme

[TexasTowelie]

Principal Of Cryptocurrency Escrow Company Charged In Manhattan Federal Court With Fraudulent Scheme Involving Over $7 Million



Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging JON BARRY THOMPSON, a/k/a “J. Barry Thompson,” the principal of the cryptocurrency escrow company Volantis Escrow Platform LLC and the related company Volantis Market Making LCC (collectively “Volantis”) with commodities fraud and wire fraud offenses. As alleged, THOMPSON took over $7 million from two victim companies after making false representations in connection with Bitcoin transactions. THOMPSON was arrested this morning in Easton, Pennsylvania, and will be presented later today before United States District Judge Joseph Leeson in the Eastern District of Pennsylvania.

Manhattan U.S. Attorney Geoffrey S. Berman said: “Jon Thompson induced investors to engage in cryptocurrency transactions through his company, Volantis Market Making, by touting a transaction structure that would eliminate any risk of loss during the purchase. As his clients soon realized, however, Thompson’s representations were false, and these cryptocurrency investors ultimately lost all of the money they had entrusted with him because of his lies. Whether a transaction involves cryptocurrency, or any other type of currency, commodity or security, this Office is committed to rooting out fraud and protecting the integrity of our markets.”

FBI Assistant Director-in-Charge Sweeney said: “Thompson allegedly thought no one would ask where their actual money went when they trusted him to invest in Bitcoin. Using phrases and terminology that the victim companies didn't understand, he allegedly preyed on their ignorance of the emerging cryptocurrency. Our job at the FBI is to investigate fraud and follow the money wherever it leads.”

As alleged in the Complaint unsealed today in Manhattan federal court:[1]

THOMPSON claimed in promotional materials that Volantis “minimize[d] settlement default risk” in cryptocurrency transactions. THOMPSON claimed that because Volantis acted as a custodian of assets for “both sides of the transaction, there is no risk of default.”

Read more: https://www.justice.gov/usao-sdny/pr/principal-cryptocurrency-escrow-company-charged-manhattan-federal-court-fraudulent