CFTC Files Suits Against Crypto Investment Schemes for Alleged Fraud | 코인긱스

CFTC Files Suits Against Crypto Investment Schemes for Alleged Fraud

0

The U.S. Commodity Futures Trading Commission (CFTC) brought two lawsuits against allegedly fraudulent cryptocurrency investment schemes yesterday.

The cases, both filed in the U.S. federal court in the New York Eastern District, are the latest move from the country’s derivatives regulator in bringing closer scrutiny over activities involving cryptocurrencies, which the agency regulates as commodities.

In one case, the CFTC alleged that Dillon Michael Dean from Colorado and his company, Entrepreneurs Headquarters Limited, collected more than $1.1 million in bitcoin from over 600 people as part of a pooled investment vehicle for trading commodity interests. The pool was said to invest in binary options contracts, according to the complaint. However, the CFTC alleged that the defendants misappropriated the funds.

In the second case, Patrick Kerry McDonnell from New York and the company CabbageTech, are being sued by the CFTC for allegedly absconding with customers’ digital assets.

According to the complaint, the agency alleged that McDonnell branded himself as a cryptocurrency investment expert with trading advice that could result in highly attractive returns on investment. For example, the complaint said that, in one case, McDonnell allegedly claimed a return of 300 percent with his trading tips.

Subsequently the regulator alleged that soon after customers sent in money and cryptocurrencies for his advisory services, the defendant cut off communications with customers and “simply misappropriated” the funds.

In both cases, according to the complaints, the CFTC said neither of the two defendants and their companies had previously registered with the agency.

According to a report from Reuters, a third CFTC case is still under seal.

These cases aren’t the first time the agency has acted on alleged wrongdoings involving cryptocurrencies. Last year, the regulator also brought a suit against another man for an alleged bitcoin Ponzi scheme.

In addition, the CFTC also indicated last year that, in the future, tokens issued through initial coin offerings may also be treated as commodities.

The filings for the two cases can be found below:

CFTC vs Dillon Michael Dean by CoinDesk on Scribd

r

CFTC vs Patrick K. McDonnell by CoinDesk on Scribd

This report has been updated with additional information.

CFTC image via CoinDesk archive

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

Source: www.coindesk.com
CFTC Files Suits Against Crypto Investment Schemes for Alleged Fraud

No comments

러시아 교통부, IBM-머스크 블록체인 플랫폼 시범 도입

러시아 교통부가 IBM과 머스크(Maersk)사가 공동으로 개발한 블록체인 운송 솔루션 트레이드렌스(TradeLens)를 도입하는 파일럿을 실행한다고 밝혔다. 27일(현지시간) 코인텔레그래프의 보도에 따르면 러시아의 막심 아키모프(Maxim Akimov) 부총리는 러시아 교통부…