US SEC Seeks to Reopen Case Against Bitcoin Fraudster, Seeks Penalties

The United States Securities and Exchange Commission (SEC) has filed to reopen a case against Bitcoin (BTC) fraudster Renwick Haddow as he has not resolved the regulator’s claims for monetary relief against him.

On Dec. 6, The agency submitted a letter to Judge Lorna G. Schofield of the New York Southern District Court requesting to reopen the case against Haddow. Last year, the SEC accused Haddow of defrauding Bitcoin investors out of over $37 million. The court found him guilty in June of 2019.

Claims against Haddow

In the letter, the SEC notes that the court gave a partial consent judgment on Haddow on Sept. 10, 2019, after which Judge Schofield closed the case on Dec. 5.

The SEC states that the consent judgment and case closure left its claims for monetary penalties unsettled. The SEC expects to either reach an agreement on monetary relief or move to seek monetary relief should the court reopen the case. 

As Cointelegraph previously reported, Haddow was extradited from Morocco to the U.S. and appeared in a Manhattan District Court last April. The Department of Justice claimed that Haddow “misappropriated investor funds” and "made false and misleading representations” to investors in Bitcoin Store, Bar Works and related schemes from November 2014 to June 2017.

Recent crypto-related crime schemes

In November, the New York Southern District Court ruled in favor of the U.S. government to intervene in a civil case against Jon Barry Thompson, who is charged with “knowingly or recklessly making false representations to customers in connection with the purported purchase of Bitcoins worth over $7 million.”

Also last month, news broke that Dennis Blieden — a former executive of a Hollywood-based digital marketing firm — had pleaded guilty to wire fraud and identity theft. Blieden embezzled over $22 million from his employer and used the stolen funds to buy cryptocurrency, gamble and cover personal expenses.