A Manhattan federal judge authorized a depository agent to release a crypto investment manager to purchase $ 3.25 million in bitcoins on his behalf in 2018.
During a videoconference hearing on February 4, U.S. District Court Judge Edgardo Ramos ordered market maker Volante founder John Barry Thompson of Pennsylvania to pay $ 3.25 million to chief investment officer at Iterative OTC in New York and sentenced him to three years in prison. Ultimate control. Thompson pleaded guilty in October 2020.
Judge Ramos took into account Thompson’s lack of malice and the fact that he himself had been a victim of fraud, according to Law 360, Judge Ramos, and said:
“Mr. Thompson has committed a serious criminal act [but] we have to put it in context. It was an extraordinary scam.”
Judge Ramos was also willing to give Thompson some latitude over concerns about the impact of Covid-19 on the overcrowded US prison system. Ramos noted that due to the high risk of contracting the virus and the lack of vaccinations in prisons, the US justice system should “reduce the pressure from prisons as much as possible.”
In 2018, Volantis received from the Thompson blockchain company $ 3.25 million from Iterative OTC to purchase 500 Bitcoins on its behalf. However, while trying to buy BTC from a third party, Thompson was in bewilderment when it was alleged that the sellers had borrowed $ 3.25 million from Iterative without giving the bitcoins in return.
Two vendors, separated attorney Philip Richtal and fugitive Randy Craig Levine, are facing fraud charges in an ongoing lawsuit against County Judge Louis A. Kaplan.
Despite losing money, Thompson lied to Iterative for several days about a bad deal and fraudulent bank statements to reveal the BTC balance that was never purchased.
In July 2018, Thompson forged documents again after another customer diverted $ 4 million to Volantis to purchase BTC, which was never obtained. Judge Ramos Thompson ordered a payment of $ 4 million.
Thompson assured the judge that he would continue to operate with a clean record, stressing that while he was guilty of deceiving his clients, his intention was to make the agreements work.
“I can promise your honor … I don’t want any more problems with the law,” he said.