030: Bitcoin Ponzi Scheme Leads to $12 million in Fines

Situation

Venture capital firm in Denver, CO, engaged in an investment fraud scheme. The firm used fraudulent marketing practices to solicit new investors. They used the new investor funds to enrich themselves and their families, or to repay earlier investors. In this case study, we see how these businesses failed to comply with federal commodities trading laws and the repercussions.