A Federal Court in New York has passed a serious verdict that’s about to make fraudsters in the crypto world lose sleep for now on. A CEO of a hedge fund, together with the hedge fund entity itself, is to pay upwards of $2.5 million for luring investors into a con net and defrauding them of their money. Apparently, the investors expected the hedge fund to do what hedge funds do best and multiply their money. That’s NOT what happened.
The said CEO, Nicholas Gelfman, along with his hedge fund called Gelfman Blueprint Inc. (GBI), are said to have hatched a malicious plot back in 2014. Their plan was to get some investors to give them control of their crypto assets and then find a way to defraud them. Between 2014 and 2016, GBI managed to bring about 85 investors onboard and got control of around 2,367 BTC tokens to manage.