The US Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against four operators for running a $44 million Bitcoin Ponzi scheme.
The CFTC, in a press release, noted that the four defendants – Marquis Egerton of North (based in North Carolina), Jatin Patel of India, Gregory Aggesen of New York, and Dwayne Golden of Florida – fraudulently solicited the funds from investors.
The Defendants Misappropriated Customers’ Funds
Patel, Golden, and Egerton are accused of collecting over $23 million worth of Bitcoin fraudulently through their websites Ecoinplus and Empowercoin. Additionally, the complaint noted that Aggesen, Patel, and Golden operated JetCoin, which they used to defraud individuals of over $21 million in Bitcoins. According to the allegation, all the fraudulent websites promised the investors that their trade would be handled by professionals, and they would be making daily profits. The investors were also promised lofty returns from their investments.
Customers’ Bitcoins were either used to make fake profit payments to others on the Ponzi scheme or misappropriated by the defendants, according to the complaint.
Egerton, Patel, and Golden are alleged to have misappropriated $9.8 million in Bitcoin along with an additional $7.8 million worth of Bitcoin received from the JetCoin website.
Acting Director of Enforcement at CFTC, Vincent McGonaglem, commented on the case. He stated that the latest case shows how fraudsters are always devising means to separate people from their hard-earned money, and frauds in digital assets are no exception.
The extent of fraud committed in the industry has turbocharged regulators to provide a regulatory framework that will checkmate these ills in the market. The charges include permanent registration and trading bans, civil monetary penalties, disgorgement, as well as restitution.
The CFTC Intensifies Efforts Against FX And Crypto Fraudsters
The CFTC has also imposed a permanent injunction against further violations of the CFTC regulations and Commodity Exchange Act.
The agency has also stepped up its efforts to protect individuals and investors in the FX, futures, and digital asset market.
Last month, the regulator charged The W Trade Group LLC and its operators, Joseph Carvajales and Larry Ramos Mendoza for fraud and misappropriation of over $19 million forex, futures, and options. The watchdog also regularly updates its websites to provide.