SEC moves to reopen case against crypto fraudster

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The U.S. Securities and Exchange Commission (SEC) is seeking to reopen its case against Renwick Haddow, the cryptocurrency scammer behind Bar Works and Bitcoin Store Inc. In its letter to the New York Southern District Court, the regulator stated that the partial consent judgment against Haddow did not resolve its claims for monetary relief.

Haddow was arrested in April 2018 in Morocco and extradited to the U.S. to stand trial for his role in the two crypto scams. He was alleged to have defrauded his investors of over $36 million. He entered into a guilty plea which the Department of Justice revealed in May. However, just months after a New York judge ordered the closure of the case, the SEC wanted it reopened.

In its letter, the watchdog said as it believes the judgment failed to resolve the issue of monetary penalties that Haddow faces. As reported by Finance Feeds, the SEC anticipates that reopening the case will lead to either one of two scenarios: the SEC will come into an agreement with Haddow on the monetary penalties or the regulator will forge on with the case and seek monetary relief through the judicial process.

Haddow had raised millions of dollars by promising investors that he’d give them guaranteed returns on their investments in his two companies. The 50-year-old British citizen allegedly misled the investors into believing that his two companies were run by leading experts and that they had already raised millions of dollars from other investors.

Since his arrest, Haddow has been cooperating with the government in its investigations into his scams. In November, the government wrote to the New York court stating that he was set to testify against Savraj Gata-Aura this month. Gata-Aura was one of Haddow’s front men and was believed to be widely involved in his scams.

Haddow baited his victims with promises of huge guaranteed returns, authorities said. Just recently, a crypto scam in Uganda took off with money from dozens of investors and its employees as well. The scam also promised its investors 40% returns on their investment. It also required its employees to invest in its crypto as well. To their surprise, the operators vanished overnight, leaving behind empty offices.