A couple of months after it became clear that the Commodity Futures Trading Commission (CFTC) will seek default win in its case against fraudulent cryptocurrency scheme Control-Finance Limited and its sole director Benjamin Reynolds, the regulator has outlined the penalties it seeks to be imposed on the defendants.

According to a proposed default judgment filed by the CFTC in the New York Southern District Court today, the regulator asks the Court to impose a civil monetary penalty in the amount of $429,000,000 ($429 million) on Reynolds.

The defendant will also have to pay restitution in the amount of $142,986,589.

Let’s recall that the CFTC Complaint alleges that since at least May 1 through October 31, 2017, the defendants used a website and accounts at popular social media sites to fraudulently solicit customers to purchase and transfer Bitcoin to them. The defendants induced customers into transferring Bitcoin to them by falsely representing that they employed expert virtual currency traders who earned guaranteed daily trading profits on all Bitcoin deposits.

The defendants made numerous material misrepresentations and omissions, including that they (1) earned customers 1.5 % in daily Bitcoin trading profits and up to 45% per month; (2) used risk diversification methods to protect customers’ Bitcoin deposits; and (3) provided a “safe haven” from Bitcoin market risks. In reality, the defendants made no trades on customers’ behalf, earned no trading profits for them, and misappropriated their Bitcoin deposits.