The CFTC (Commodity Futures Trading Commission) filed complaints against three companies for having participated in fraudulent activities involving digital currencies. These prosecutions relate to fraud and misuse of bitcoins as well as litecoins.
Below are some details regarding this case :
Business of crypto-currencies being pursued by the CFTC
The CFTC in the United States has brought claims before the court in New York on Thursday against three companies of crypto-currencies to fraud. The agency has published the results of its investigations on its web site on Friday. This case involves three quite distinct cases. The first is related to Dillon Michael Dean and his british company, Contractors Headquarters. They have raised 1.1 million dollars of bitcoins from more than 600 investors from April 2017 at today, promising to convert them to fiat currency. Dean claimed to have solid skills in the field and the customers were promised high rates of return, specified by the CFTC.
Source : Pixabay. Frauds are carried out by firms of crypto-currencies
In addition, the oversight body of the financial derivatives has alleged that the defendants have not negotiated on behalf of their clients, but they have diverted over a million dollars. Dean has also launched another operation similar business called Real Trade Profits. The agency said that the complaint of the CFTC accuses the defendants of engaging in fraudulent activity designed to hijack the crypto-currencies of the investors.
Fraud related to Bitcoin and Litecoin
The second case involved Patrick K. McDonnell and his company Cabbage Tech Corp. The CFTC accuses them of fraud and misappropriation in the purchases and transactions of Bitcoin and Litecoin. Moreover, this regulator pointed out that neither McDonnell nor his company were registered with the agency in any capacity whatsoever.
As regards the third company, the case remained under seal. In effect, the CFTC has not yet provided details with respect to this third company.
Source : NewsBitcoin