The US regulator sued two companies for crypto fraud
The US Futures Trading Commission filed charges against three separate companies for fraudulent trading. Charges are raised for fraud and misuse of Bitcoin and Litecoin.
The US Futures Trading Commission filed civil enforcement cases at New York City Court on Thursday against three separate servicemen alleged to be cheating customers and violating the rules on trade in goods. The agency continued to publish details of two of the cases on Friday.
The first indictment was filed against a Colorado resident, Dylan Michael Dean. His company, Entrepreneurs Headquarters Ltd, is registered in the United Kingdom. Since April 2017, they have deceived over 600 people so far. The total amount of money collected by their clients is $ 1.1 million, which is collected by the fraudsters in Bitcoin. Dean has claimed to have "professional skills" in trading with derivatives and has promised customers high levels of return. However, investigations in the case show that Dean has not traded derivatives on behalf of his clients, but has appropriated more than $ 1 million of his clients' funds. Dean has launched another such "business venture," called "Real Trading Profit." Given the fact that the accused were not registered with the Futures Trading Commission as Derivatives Servers, the Agency added:
"The Futures Trading Commission accuses the defendants of being involved in fraud to deceive their customers with Bitcoin by deceiving their clients that their funds will be invested in derivatives and misuse of the company's funds.
The second case concerns Patrick K. McDonnell and his company, Cabbage Tech. Corp, operating as a manipulation of the coin market. The Futures Trading Commission blames McDonnell for fraud and abuse in connection with the trade with Bitcoin and Altcoins. Referring to the fact that neither McDonnell nor his company had ever been registered with the agency, the regulator added:
"Since early 2017, McDonnell and his company have been involved in a misleading and deceptive digital currency scheme to force customers to send money to his company. Probably in exchange for real-time digital currency trading tips and the buying and selling of digital currency on behalf of its customers. "
The Commission found that "the alleged expert advice on real-time digital trading has never been presented". Customers have never received their funds back. The agency also said that the defendants "removed their social media website and accounts and ceased to communicate with their clients who have lost more if not all of their invested funds due to fraud and misappropriation of the funds invested."
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