CFTC fines ATM Coin founders $4.25 million
The “worthless” coin is proving valuable to government operations
As the cryptocurrency world becomes more and more popular, it also makes it available for scammers to take a piece from it. It was published last Friday by the US Commodity Futures Trading Commission (CFTC) that they will be fining the company responsible for a ”worthless” virtual currency called ATM Coin. They offered a sort of binary options system as an option to profit from it to the customers but, apparently, it was more rigged than anything else.
The binary options basically give the buyer the right to buy or sell a currency for a certain price within a specific timeframe. ATM Coin promised out of the chart revenue that was sadly crushed by software that always seems to have a heavier weight on the company’s side. This situation made it impossible for a customer to make a profit on the binary options gamble. On top of that, they were attempting to keep the users’ funds in St. Kitts and Nevis, which makes the funds really hard to be traced. In the end, the CFTC fined ATM Coin $4.25 million for fraud and illegally holding of funds.
Actually, Facebook has placed a ban on most binary options and initial coin offerings (ICO) advertisements, as well as most crypto-related talk for the high risk of them being deceptive. ”There are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith,” said Rob Leathern, product management director from Facebook. It’s clear the intentions ATM Coin had were not the best, and according to the CFTC’s complaint, companies have to be registered on a board of trade in order to run the business legally in the US.