New York Judge Grants US Government Right to Intervene in $7M Bitcoin Fraud Case

The New York Southern District Court has ruled in favor of the United States government to intervene in a civil case against Jon Barry Thompson, who is alleged of a $7 million Bitcoin (BTC)-related fraud.

With Judge Loretta A. Preska’s ruling on Nov. 19, the U.S. government — in this case, represented by the Commodity Futures Trading Commission (CFTC) — now has the right to intervene in civil proceedings that are running parallel to a criminal multimillion Bitcoin scam case.

Thompson, a resident of Easton, Pennsylvania, is charged with “knowingly or recklessly making false representations to customers in connection with the purported purchase of Bitcoins worth over $7 million.” Preska stated:

“Upon the consent of all relevant parties, the Government’s application to intervene in the above entitled matter and to stay the matter in its entirety until the conclusion of the parallel criminal case, United States v. Jon Barry Thompson […] is granted.”

Initiation of the…