The US Commodity Futures Trading Commission (CFTC) has just landed a knockout punch in the fight against Bitcoin-related fraud. In a record-breaking win, the regulator has secured a penalty payment of $3.4 billion in a case involving a Bitcoin scam.

According to the CFTC, the defendants, which included Circle Society and its operator, David Gilbert Saffron, perpetrated a Ponzi scheme in which they fraudulently solicited investments for the trading of Bitcoin futures contracts. The scheme ran from 2017 to 2019, with the defendants defrauding investors of over $17 million.

This penalty payment is the largest ever obtained by the CFTC and is a significant victory for the regulator in its efforts to combat cryptocurrency-related fraud. The CFTC has been cracking down on fraudulent activity in the crypto space in recent years, and this victory sends a strong message to other would-be scammers that the regulator will not tolerate illegal activity.

CFTC Chairman Heath P. Tarbert said in a statement, “This action shows the CFTC’s commitment to rooting out fraud and misconduct in our markets, including those involving digital assets. We will continue to work hard to identify and prosecute those who engage in fraudulent activity in the futures and derivatives markets.”

The penalty payment comes as a relief to investors who were duped by the fraudulent scheme. It also serves as a warning to others who may be considering investing in unregulated cryptocurrency schemes. As cryptocurrency gains popularity, regulators around the world are stepping up their efforts to protect investors from fraud and other illegal activity.

The CFTC’s victory also highlights the importance of due diligence when investing in cryptocurrency. Investors should be wary of promises of high returns and should always do their own research before investing in any cryptocurrency-related venture.

In related news, Bitcoin’s price has been on a rollercoaster ride in recent days. The cryptocurrency experienced a sharp drop in price earlier this week, falling from over $30,000 to just above $28,000 in a matter of hours. However, the cryptocurrency has since rebounded and is currently trading at around $29,000.

Bitcoin’s volatility is not new, and investors should be prepared for sudden price swings. While the cryptocurrency has been a lucrative investment for some, it is important to remember that it is still a relatively new and untested asset class. As such, investors should be cautious and only invest what they can afford to lose.