Victor Ugochukwu · Dec 14, 2020 . 5min read
Crypto-asset escrow company involved in a $3.25M Bitcoin Scam
Cryptocurrency escrow manager, Jon Thompson, pleads guilty to fraud charges. He scammed companies of $7M via his escrow business.
By Komal Joshi · Oct 2, 2020 . 5min read
Jon Thompson, the director of Volantis Market Marking LLC and Volantis Escrow Platform LLC, has confessed to perpetrating a multimillion-dollar cryptocurrency scam. The U.S. DoJ (Department of Justice) asserts that the Jon Thompson of crypto-asset escrow company Volantis Market Making has pled liable to commodities fraud scam worth more than $3.25 million on October 1. Thompson would face a maximum of a ten-year jail term. His sentencing will take place on January 7, 2021.
Bitcoin Escrow Operator defaulted company rules.
In accordance with the document from the DOJ, Thompson ran the two digital currency escrow firms. The two firms are, namely, Volantis Market Marking and Volantis Escrow Platform. He operated them under a common name Volatis. Last July, the U.S. Department of Justice indicted Thompson with two counts each of wire fraud and commodities fraud for misappropriating $7 million from clients and allowing to present them with Bitcoin and then not delivering. Fourteen months later, he is pled guilty to one count of commodities fraud, the U.S. Attorney’s Office for the Southern District of New York today announced.
For the uninitiated, he began an unnamed organization to assign millions of dollars to his escrow firms to buy cryptocurrency in the past two years. Nevertheless, it defaulted as a Bitcoin escrow. He assured the unnamed company that he wouldn’t release their money to the digital currency seller, except he confirms that those Bitcoins have been sent to him (Thompson). On that note, the company transferred about $3.25 million to Thompson for the cryptocurrency purchase. Nevertheless, the latter’s escrow company sent out the funds to another unnamed third party, despite not receiving Bitcoin.
However, the DoJ says that Thompson erroneously claimed that he would settle the transaction through an atomic swap process. The Department of Justice accuses him of lying to the company for various days regarding their funds and crypto status. Indeed after clearing those funds, Thompson covered the development from the company for days. In July last year, the escrow manager was arrested on a community fraud charge.
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