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Inside money, markets, and Big Tech

This article was published on November 21, 2019

New York judge rules US government can intervene in $7M Bitcoin scam

New York judge rules US government can intervene in $7M Bitcoin scam Image by: William R Johnson, A1C, USAF
Yessi Bello Perez
Story by

Yessi Bello Perez

Former Senior Writer, Growth Quarters

The US government will be able to intervene in a civilcase against Jon Barry Thompson, a mancharged with running a fraudulent Bitcoin escrow firm which took over $7 million in cryptocurrency from victims.

The government, represented by the CommodityFutures TradingCommission, filed a request for intervention and staying civil proceedings until the conclusion of the parallel criminal case, on November 18.

Judge Loretta A. Preska from the New York Southern District Court ruled in favour of the government intervening in civil proceedings, which reportedly mirror the criminal case against Barry, Finance Feeds reports.

“Upon the consent of all relevant parties, the Government’s application to intervene in the above entitled matter and to stay the matter in its entirety until the conclusion of the parallel criminal case, United States v. Jon Barry Thompson […] is granted,” Preska said.

A resident of Pennsylvania, Thompson is charged with two counts of commodities fraud, each of which carries a maximum sentence of 10 years behind bars, and two counts of wire fraud, each of which carry a maximum sentence of 20 years in prison.

He was indicted by the US Federal Bureau of Investigation (FBI) in July.

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