Alleged British Bitcoin Fraudster Extradited to US for Embezzling More Than $36 Million
Renwick Haddow, a 49 year old British citizen was recently extradited to the US from Morocco, as announced by the FBI. Haddow’s extradition was as a result of charges that he embezzled over $36 million by making material misrepresentations and misappropriating investments funds in Bitcoin Store and Bar Works. He is to face the charges against him at the Southern District Court of New York.
After the SEC filed fraud charges against him, Haddow was arrested in Morocco on a provisional arrest warrant but was released in July 2017.
He supposedly made use of sales representatives to attract potential investors and sell securities in the two companies controlled by him. He made sure he hid himself while doing so because of disreputable past.
The SEC’s complaint says that promotional materials presented to investors in both companies were showing senior executives who did not really exist. The complaint also misrepresented some very important points about his companies’ operations.
Renwick Haddow is supposed to have diverted more than 80% of the funds raised for Bitcoin Store, and also to have sent more than $4million from the Bar Works bank accounts to Mauritius and another $1 million to Morocco.
It was “an easy-to-use and secure way of holding and trading Bitcoin and had generated several million dollars in gross sales”: this is a claim form the materials presented to Bitcoin Store Investors.
The SEC is adamant that Haddow’s companies never really had any proper operation, nor generated the gross sales claimed. An example is that the bank says to have received less than $250,000 as incoming transfers in 2015. The problem is that none of these transfers appear to come from paying customers. The supposed “Jonathan Black” name was adopted by Haddow to hide his involvement while falsely claiming an extensive background in finance.
“As alleged in our complaint, Haddow created two trendy companies and misled investors into believing that highly-qualified executives were leading them to quick profitability. In reality, Haddow controlled the companies from behind the scenes and they were far from profitable,” Andrew M. Calamari, Director of the SEC’s New York Regional Office, explains.
Renwick Haddow is charged with two counts of fraud, and he could be sentenced to 20 years for each count if he is found guilty.
