The Justice Department of the United States charged John Barry Thompson, the principal of Volantis Market Making, with crypto fraud schemes involving more than USD 7 million. The company is a crypto coin escrow.

Based on the press release, the principal of the company made false statements about the company and deceived two other companies into giving him the money.

Thompson was captured and charged on Thursday.

The United States Attorney for the Southern District of New York, Geoffrey Barnes, stated that Thompson persuaded investors to participate in crypto transfers through Volantis Market Making assuring that the transaction system would eradicate the potential of losing funds.

Yet, Thompson’s customers understood that he was making false claims and the money that they gave him was long gone. It does not matter what kind of currency is involved in the transactions, the security of customers should always be guarded.

The offender also declared that Volantis Market making reduces settlement risks. Thompson took around USD 3 million in a month from one customer and did not deliver the promised crypto coins. In addition, he demonstrated customer untrue account statements. The principle of the company obtained USD 4 million from another customer who also failed to receive the Bitcoins or a refund.

The offender believed that the companies would not seek their money as they had trust in him.