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The Commodity Futures Trading Commission of the United States (CFTC) has laid charges against several trading systems. investment in cryptocurrency to defraud clients and investors. ]
The lawsuit, which was filed Thursday in the United States Federal Court in New York, accuses CabbageTech and Entrepreneurs Headquarters Limited of engaging in fraudulent practices to obtain cryptocurrency from investors.
CabbageTech, which operates as Coin Drop Markets, was a New York-based company that claimed to offer real-time cryptocurrency consulting and asset management services. The complaint alleges that CabbageTech's owner, Patrick K. McDonnell, failed to provide the commercial advice promised to the clients and stole the funds entrusted to his management by the clients.
The complaint alleges that, after receiving the funds, the defendants severed communications with customers and erased their presence on the Internet.
"This action is one of the latest examples of the CFTC's ongoing commitment to act aggressively and resolutely to eradicate fraud and the bad actors involved in virtual currencies", said James McDonald, director of the CFTC. "We will continue to work hard to identify and eliminate the bad players in these markets."
In the second case, the CFTC alleged that Colorado resident Dillon Michael Dean, with his British company The Entrepreneurs Headquarters Limited, had operated a Ponzi scheme in which he sought and diverted at least $ 1.1 million. bitcoin of more than 600 investors on the pretext of creating an investment pool.
"Increased public interest in Bitcoin and other virtual currencies has provided new opportunities for bad actors," said McDonald. "As this case shows, the CFTC will continue to take swift action to put an end to such fraudulent schemes and to hold fraudsters accountable for their faults. "
Reuters reported that the CFTC filed a third complaint against a cryptocurrency investment system, but details of this case are currently sealed.
The lawsuits come as US regulators monitor the cryptocurrency ecosystem with increased control.
On Friday, the CFTC and the US Securities and Exchange Commission (SEC) issued a coercive warning stating that they would continue to patrol the cryptoasset markets and "look beyond form, examine the substance of the case." Activity and prosecute violations of federal law ". securities and commodities laws. "
CFTC President J. Christopher Giancarlo reportedly stated at an industry conference that he had asked his staff to develop a "strengthened review process" "for future bitcoin and other derivatives related to cryptocurrency.
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