The New York federal governmental bodies have unsealed fraud allegations, towards the principal of Volantis – a crypto-focused escrow business, with the total fund reaching more than $7 million.

According to a document issued by the US DoJ, on July 25, the US Attorney of the Southern District of New York – along with the FBI Assistant Director-in-Charge of the N.Y Field Office – have unsealed a submitting, with charges against Volantis. The company’s director – Jon Barry Thompson – have also been brought into custody on the same day.

Specifically, Thompson has presented false data, regarding Volantis’ Bitcoin trading activities, in an attempt to illegally obtain more than $7 million from 2 involved firms. Per the document, Thompson has purportedly played the role of a custodian to look over the transaction process for the 2 companies, establishing a business that allow people to acquire low-risk crypto settlements.

However, this service is only a cover for his true intentions of illegally acquire the “custodied” fund. 

“Jon Thompson induced investors to engage in cryptocurrency transactions through his company, Volantis Market Making, by touting a transaction structure that would eliminate any risk of loss during the purchase.  As his clients soon realized, however, Thompson’s representations were false, and these cryptocurrency investors ultimately lost all of the money they had entrusted with him because of his lies.”

William F. Sweeney Jr – The FBI Assistant Director-in-Charge – revealed that Thompson employed technical languages in an effort to con the businesses that haven’t been accustomed to how the crypto space work.

“Using phrases and terminology that the victim companies didn’t understand, he allegedly preyed on their ignorance of the emerging cryptocurrency. Our job at the FBI is to investigate fraud and follow the money wherever it leads.”

Thompson has received allegations for his crimes in commodities fraud and wire fraud.