London Daily

Focus on the big picture.
Saturday, May 31, 2025

The mysterious case of the $571m Manchester 'Bitcoin scam'

The mysterious case of the $571m Manchester 'Bitcoin scam'

The US’s commodities watchdog is on the hunt for a Manchester man it claims is the mastermind behind a Bitcoin scam that swindled thousands of victims and owes $572m (£416m).
The regulator is facing a major obstacle, however, as their suspect, Benjamin Reynolds, 38, appears to have vanished without a trace. Questions have now emerged over whether he ever existed.

The investigation comes as cryptocurrencies continue their surge into the mainstream. Coinbase, the cryptocurrency exchange, was valued at $100bn in its stock market debut on Wednesday. The price of Bitcoin hit a record of $64,500 this week as corporate interest continued to pump up the price.

Yet cryptocurrency scams and frauds remain common, and frequently difficult for investigators to crack. The mystery of Benjamin Reynolds is a case in point.

Last month, the US Commodity Futures Trading Commission (CFTC) accused Reynolds of stealing bitcoin worth around $1.3bn through a company named Control-Finance. A court in New York has ruled that Reynolds owes $143m in restitution in addition to a $429m fine.

Meanwhile, some of those who lost out have formed a digital posse to pursue Reynolds, convinced he may not be who he seems.

In May 2017, Facebook adverts paid for by the company linked to Reynolds, Control-Finance, began enticing investors with promises of hefty passive income. It promised to invest customers’ bitcoin, boasting 1.4pc daily returns.

According to the CFTC, Reynolds not only used the company to encourage customers to give him cryptocurrency but to share links with their friends and family to get more people involved in his scheme. He appeared in YouTube videos and communicated with customers over email and text, often fulfilling withdrawal requests and therefore failing to raise suspicion.

US regulators claim this was just a ruse. Instead, they allege, Reynolds took most of the bitcoin for himself and used customers’ deposits to satisfy withdrawal requests, similar to a Ponzi scheme. His company, Control-Finance, solicited at least 22,858,822 bitcoins before vanishing from the web.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×