New York-based citizen of the UK charged by the SEC with $5 million bitcoin scam

3 July 2017

The Securities and Exchange Commission (SEC) brought charges on June 30 against a UK citizen over the bitcoin-based scam. According to the report published in the media, the SEC incriminated to Renwick Haddow, a citizen of the United Kingdom with the permanent residence in New York, in defrauding investors by encouraging them to invest funds into the false bitcoin trading platform and orchestrating another scheme under the guise of workspace offer.

Andrew Calamari, director of the SEC New York office, reported that the Commission established the fact that Haddow incorporated two shell companies and deceived his investors making them believe that those firms were led by highly qualified executives using their experience to generate high revenues for the companies, while in fact they were controlled by Haddow, and featured more than modest profitability with no real executives.

Haddow tricked users into placing their money in his forged Bitcoin Store, attracting them with misleading statements about great opportunities to trade and hold the digital currency on the platform and millions of dollars earned by the company in gross sales, and as a matter of fact it was far apart from the truth, as the bitcoin trading firm had no actual operations.

In addition, through his Bar Works service which offered workspaces in the catering industry, Haddow collected up to $37 million from investors, and the SEC found that the platform actually was selling leases and sub-leases which functioned like investment notes.

The SEC report notes that through the fraudulent scheme with bitcoin trading Haddow has misappropriated about $5 million transferred to offshore accounts in Mauritius and Morocco.

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