Alan Friedland’s $1.8 million CompCoin fraud settlement
Following on from news Alan Friedland had opted to settle CompCoin fraud charges with the CFTC, mid-trial no less, details of Friedland’s settlement are now public.
As per a court order approving the settlement on March 24th, Friedland will pay $1.2 million in restitution to CompCoin victims.
Friedland’s restitution falls approximately $400,000 short of the $1.6 million CompCoin took in. Going somewhat to make up that shortfall is a $600,000 civil penalty.
In addition to restitution and a civil penalty, Friedland is also permanently banned from
- trading;
- entering into any transactions involving “commodity interests”;
- having any commodity interests traded on his behalf;
- registering with the CFTC or applying for an exemption; and
- having anything to do with someone who is registered with the CFTC.
The NFA has been appointed to Monitor Friedland’s restitution compliance, with the aim of distributing funds to CompCoin victims.
Friedland’s CompCoin fraud settlement was approved by the court on March 24th. The settlement brings BehindMLM’s CompCoin fraud coverage to a close.
We began reporting on it as part of our due-diligence into Friedland’s NRGY Ponzi scheme. That has since evolved to BuilderDefi, which began soliciting investment on February 10th.
Website traffic analysis suggests, like NRGY, BuilderDefi hasn’t taken off.
In the wake of settling CompCoin fraud charges, whether US authorities go after Friedland for NRGY and BuilderDefi remains to be seen.