NEW YORK—A federal court here has ordered Gelfman Blueprint Inc. and its chief executive officer, Nicholas Gelfman, to pay $2.5 million is what is the first anti-fraud enforcement action involving Bitcoin filed by the Commodity Futures Trading Commission (CFTC), the agency stated.
The court orders said that between 2014 and January 2016, Gelfman swindled more than $600,000 from at least 80 customers who were told their funds were part of an algorithmic trading strategy, MarketWatch reported.
"This case marks yet another victory for the Commission in the virtual currency enforcement arena," said James McDonald, director of enforcement at the CFTC.