Saturday, January 20, 2018

Feds Sue Three E-Currency Operators for Fraud

The Commodity Futures Trading Commission said on Friday that it has filed charges against three separate virtual currency operators alleging the defendants had defrauded customers and broken other commodity trading rule, reports Reuters.

The CFTC charged New York resident Patrick McDonnell and his company CabbageTech with stealing money from customers that he had solicited for providing virtual-currency trading and other services.

In the second case the CFTC alleged Dillon Michael Dean of Colorado and his UK-registered company Entrepreneurs Headquarters operated a Ponzi scheme in which he solicited $1.1 million in bitcoin from more than 600 investors, promising them that their cash would be pooled and invested.

But here is the most interesting case, the third case remained under seal, suggesting there are more to come.

I continue to hear that some big names will eventually be busted,


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