The US Commodity Futures Trading Commission announced Tuesday that it had filed a civil enforcement case to indict four individuals for operating a Ponzi scheme worth $44 million Bitcoin .
According to the press releases, Dwayne Gold of Florida, Jatin Ptel of India and Marquis Egerton from North Carolina were charged with fraud in Ponzi schemes involving Bitcoin. They are accused of fraudulently soliciting investments of more than $44million and misappropriating millions.
Egerton, Patel, Golden, and Patel are accused of fraudulently soliciting bitcoins worth more than $23million through the websites Empowercoin, Ecoinplus, and Ecoinplus. The complaint also alleges that Golden, Patel and Aggesen operated JetCoin through which they defrauded more than $21,000,000 in bitcoins.
According to the complaint, all websites claimed that they would trade bitcoins daily for profits for professionals.
According to the complaint, defendants and their accomplice either stole customers’ Bitcoins or used them to make fictitious profits to Ponzi schemes customers.
For Civil Monetary Penalties
Golden, Patel, Egerton, and Patel are accused of having misappropriated $9.8million in bitcoin. A second accusation is that an accomplice and the operators were also accused of misappropriating $7.8 million in Bitcoin from JetCoin.
Vincent McGonaglem (Acting Director of Enforcement) commented, “This case shows how fraudsters never tire trying to seize people’s hard-earned cash, and digital asset thefts are no exception.” As charged, restitution, disgorgement and civil monetary penalties are required. Also, a permanent injunction is requested to prevent further violations of the Commodity Exchange Act and CFTC regulations.
Last month, the CFTC indicted The W Trade Group LLC and Larry Ramos Mendoza, both of Miami, Florida, for fraud and misappropriation totaling more than $19million. This included options, forex, futures and options.