The accused operator, Jon Barry Thompson, of an illicit cryptocurrency escrow service that defrauded $7 Mln from 2 customers, is to file a guilty plea – with prosecutors getting to finalize proceedings later in the month of September.
“The parties expect to succeed in a disposition of this matter and respectfully request that the court set an impact date in Sep 2020 for the entry of that disposition,” the prosecution added within a letter submitted to the court.
Earlier in April, Thompson’s counsel, Peggy Cross-Goldenberg, indicated that both the parties had made “substantial progress” towards disposition.
Four Ongoing Bitcoin Fraud Cases
Earlier in Sept. last year, Thompson, was found guilty in four courts relating to his provision of cryptocurrency escrow services via his firm Volantis Market Making. After being arrested in Pennsylvania, Thompson was released on a $500k bail.
Prosecutors allege that Thompson received $3 Mln to fund the acquisition of Bitcoin [BTC] on behalf of a corporation within June and July of 2018. Thompson then transferred the funds to a 3rd-party entity without first receiving any Bitcoin’s – leading to the apparent loss of the funds.
After allegedly lying to the firm about the status of the transaction, Thompson convinced a 2nd firm to transfer $4 Mln to buy cryptocurrencies – also leading to a big portion of the funds being forwarded to a 3rd party without the client receiving any BTC.
Thompson is facing two counts of commodities fraud – each carrying up to 10 years imprisonment, and two counts of wire fraud – both carrying a maximum sentence of upto twenty years of imprisonment.
Upto 60 years Of Imprisonment Expected
Volantis is additionally facing civil charges filed within the U.S. CFTC [Commodities Futures Trading Commission], while Thompson is also facing a lawsuit brought by Irish firm Symphony FS – who are believed to possess forked out the $4 Mln to Volantis for escrow services.