British man extradited to U.S. for Bitcoin scam more than $35 million

British national extradited from Morocco to the United States for Bitcoin scam that defrauded investors of more than $36 million.

British national extradited from Morocco to the United States for Bitcoin scam that defrauded investors of more than $36 million.

Renwick Haddow, 49, was charged by criminal complaint in 2017 for engaging in Bitcoin scam schemes to defraud investors by making material misrepresentations and misappropriating investment funds in companies created called Bitcoin Store Inc, and Bar Works Inc. In July 2017, Haddow was arrested in Morocco by a provisional arrest warrant for participating in these schemes.

From November 2014 through June 2017, solicited investments in start-up companies Bitcoin Store he created and controlled, a purported online platform for purchasing, selling, and storing the digital currency like Bitcoin.

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And Bar Works which purports to be a company that adapts former restaurants, bar premises, and other locations into co-working spaces. When doing so, Haddow made material misrepresentations about, among other things, the management, operations, and historical performance of those companies.

For example, Haddow concealed his interest in Bitcoin Store and fabricated the purported “experienced team of leading investment professionals” working at the company. In connection with Bar Works, Haddow adopted the alias “Jonathan Black” to further hide his role in the schemes. Haddow claimed that “Jonathan Black” had an extensive background in finance and had a role in setting up “Car Share,” a car-sharing application.

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Haddow solicited investments through agent brokers and through his control of InCrowd Equity Inc, which represented itself as a type of crowdfunding website through which investors could buy shares of start-up supposedly vetted by InCrowd Equity. British scammer did so without disclosing to investors that he had an ownership interest in both InCrowd Equity, on the one hand, and Bitcoin Store and Bar Works, on the other. Haddow also misappropriated without permission funds purportedly invested in Bitcoin Store and Bar Works for his own use and the use of others.

Haddow has been charged with 2 counts of wire fraud, one relating to the Bitcoin scam scheme and the second connecting to the Bar Works scheme. Each charge carries a sentence of twenty years in federal prison.

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