CFTC says group sold illegal binary options, misrepresented value of virtual currency

The Commodity Futures Trading Commission said it's charged a number of individuals and companies involved in what it says is a fraudulent scheme involving binary options and a virtual currency known as ATM Coin. According to the CFTC, it's charged New Yorkers Blake Harrison Kantor and Nathan Mullins, as well as the entities Blue Bit Banc, Blue Bit Analytics, Mercury Cove and G. Thomas Services. It's also named Blue Wolf Sales Consultants as a relief defendant for receiving customer funds. A district court imposed a restraining order freezing their assets, the CFTC said, and the United States Attorney for the Eastern District of New York, Richard Donohue, filed a parallel criminal action. According to the complaint, the defendants solicited illegal off-exchange binary options, misappropriated a substantial amount of the customer funds and invited customers to transfer their account balances into a virtual currency known as ATM Coin. Defendants then allegedly misrepresented to customers that their ATM Coin holdings were worth substantial sums of money, the CFTC said.