Digital Currency Operators Sued By US Federal Derivatives Watchdog

Digital Currency Operators Sued By US Federal Derivatives Watchdog

Digital Currency Operators Sued By US Federal Derivatives Watchdog

The U.S. derivatives regulator filed a federal civil enforcement action alleging fraud and misappropriation in connection with trading in bitcoin and litecoin against New York-based CabbageTech, Corp., which operates as Coin Drop Markets (CDM), and the firm's owner.

The lawsuits, filed by the Commodity Futures Trading Commission in a NY district court, come amid heightened fears globally over the risks that bitcoin and other virtual currencies may pose to investors and the global financial system.

In the second case the CFTC alleged Dillon Michael Dean of Colorado and his UK-registered company Entrepreneurs Headquarters Ltd 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. "We will continue to work hard to identify and remove bad actors from these markets".

White House Slaps Down Trump Health Conspiracy Theorists
The doctor said he had " absolutely no concerns ", adding: "He's very sharp". "We're doing a decent job with his cholesterol". There is internal debate in the West Wing over whether Trump said "s***thole or "s***thouse".

In the first case, the CFTC charged Patrick McDonnell of NY and his company, CabbageTech, with robbing customers that signed up for digital currency trading.

And in some cases, potential returns of as much as a whopping 300 percent in less than a week were trumpeted, said the complaint. Since around January 2017, the company promised customers real-time trading advice but never provided it and essentially disappeared after receiving payment, the complaint said.

The CFTC Complaint further alleges that to hide their scheme, soon after obtaining customer funds, Defendants removed the website and social media materials from the Internet and ceased communicating with CDM Customers, who lost most if not all of their invested funds due to Defendants' fraud and misappropriation.

'Sexual abuse, beatings and starvation' of chained Turpin family
Their undernourishment was so severe that the 29-year-old weighed only 82 pounds when deputies arrived, Hestrin said. David Turpin (R) and Louise Turpin (L) appear in court for their arraignment in Riverside, Calif ., U.S.

The Complaint alleges that Defendants solicited customer deposits using company websites, YouTube videos, and Facebook posts, where Defendants claimed that customers' funds would be pooled and invested in commodity options on behalf of customers, that Dean had "strong skills" in options trading, and that Defendants were generating high rates of return through trading commodity options, among other false claims.

In its continuing civil litigation, the CFTC seeks, among other relief, restitution to defrauded customers, disgorgement of benefits from violations of the Commodity Exchange Act and CFTC Regulations, civil monetary penalties, trading bans, and a permanent injunction against future violations of federal commodities laws, as charged.

The suits are the first actions by the CFTC since permitting the launch of bitcoin futures exchanges last month.

Zimbabwe politician, Roy Bennett, dies in helicopter crash
Two Houston area men who are longtime friends were among a group of five who died late Wednesday in a New Mexico helicopter crash. He went into exile in South Africa almost 10 years ago after years of struggling against the government of Robert Mugabe .

Related news