Renwick Haddow? Kingpin? More like con artist extraordinaire. The SEC charges this British guy. He fled the UK, trouble followed him to New York. He ran two scams, Bitcoin Store (total joke) and Bar Works (a Ponzi scheme!). They grabbed over $37 million. He even used fake names and executives. Seriously. Guess who got extradited? Yeah, him. Wonder what happened next? What Is Bitcoin?
So, here’s a guy, this Renwick Haddow, a British dude who apparently thought he could just roll into New York and start ripping people off. Turned out, the SEC didn’t appreciate his hustle. They charged him back in 2017, claiming he ran two bogus investment schemes. One was called Bitcoin Store Inc., which sounded fancy, like you could trade digital money. The other was Bar Works Inc., pretending to be co-working spaces in old bars. The SEC said both were scams. Total fake, apparently.
British guy Renwick Haddow rolled into New York to rip people off with scam investment schemes.
This Haddow, with a history of regulatory issues in the UK, allegedly used an unregistered broker-dealer, InCrowd Equity Inc., to pull in investors. For Bitcoin Store, they claimed it was a secure platform making millions. SEC said nope, zero operations, and the money raised was mostly just siphoned off. Less than $250k came in via bank transfers, nothing looked like real customer dough. Haddow allegedly blew over 80% of that cash. Classy. He partnered with James Moore, who also received approximately $1.6 million from Bar Works in payments.
Then there was Bar Works. They sold “desks” and promised big returns, smelling a lot like a Ponzi scheme to some. They raked in over $36 million from September 2015 to June 2017. Renwick Haddow was in control of Bar Works which operated from approximately 2015 to 2017. Bitcoin Store and Bar Works together pulled in over $37 million combined from investors between 2015 and 2017. A chunk of that money, over $4 million, went to accounts in Mauritius, and another million to Morocco. Nice little getaway fund during the fraud, I guess.
Defaulting on payments started in early 2017, and over 800 investors got burned, some suing for millions. Haddow reportedly used the alias “Jonathan Black” to hide his past. The offering materials? Allegedly מלא of fake executives. He used sales reps, doing cold calls. His wife, Zoya Kiselova, also allegedly got involved, using the alias “Zoe Miller.” These kinds of financial fraud investigations are often praised by the U.S. Attorney and FBI for their diligence. The absence of blockchain technology in these schemes meant transactions could be altered, making the fraud easier to perpetrate.
Haddow was arrested in Morocco in 2017, extradited, and eventually pled guilty in 2019 to wire fraud and conspiracy for both schemes. The SEC already got default judgments against his entities, hitting Bar Works Inc. and Bitcoin Store with massive amounts owed. He’s permanently barred from pretty much any securities gig too.
Sentencing keeps getting pushed, but a date for 2025 is out there now. Just another guy who thought he could game the system, apparently.
Frequently Asked Questions
Is This the First Time the SEC Brought Charges?
No, dude, way before this case, the SEC was already poking around.
Their initial crypto beef? That was back in 2013 against some scheme called Bitcoin Savings & Trust.
This agency’s been busy with crypto cases for over a period of ten years; they aren’t exactly new to this whole scene.
How Does the SEC Monitor Cryptocurrency Activity?
So, how does the SEC watch crypto?
They got surveillance for weird trading. Like, seriously watching bid/ask prices and volume.
They check out firms’ crypto wallet stuff and marketing too.
Probably use blockchain analysis tools, though they don’t brag about it.
They’re looking for scams, unregistered junk, and manipulation.
Basically, keeping an eye on things.
Will Investors Recover Any Lost Funds?
Will investors recover lost funds? Hard to say, honestly.
Recovery in crypto cases? Tough. Funds vanish fast, identities are hidden.
The SEC does try; they’ve got these Fair Funds and receivers. Sometimes assets are liquidated.
But don’t expect full recovery, or quick payouts. It takes bloody long, seriously. Years.
What Legal Precedents Exist for Crypto Fraud?
Legal precedents for crypto fraud? Oh yeah, they’re building.
Agencies like the CFTC have nailed cases involving market manipulation, even on decentralized platforms. They hit FTX and Binance hard with massive penalties.
DOJ busts crypto Ponzi schemes and uses old school fraud laws.
Tax evasion precedents? Yep, got those too. The feds are getting creative.
Can This Case Impact Bitcoin’s Future Values?
Yes, this case can totally impact Bitcoin’s future values, no kidding.
Specifically, it could make its price drop, especially in the short term. Less trading might happen too.
Also, brace yourself for more wild price swings – volatility goes way up.
Plus, people get nervous, drying up liquidity.
Even Bitcoin, the big guy, can get dragged down.