The USA Commodities Futures Trading Commission has won a case against a cryptocurrency firm CabbageTech Corp., which will result in a permanent ban of the operator.
The firm was called a bald and vicious fraud, and it has been proven in the district court. Patrick McDonnell, a cryptocurrency promoter and CabbageGroup operator was charged as well, after accusation in fraud and misappropriation with purchases and trading with bitcoin and litecoin.
However, he is still arguing, that the authority didn’t have any right to check or regulate his actions. However, his claim was rejected by the New York district judge.
Earlier this year, Mr. McDonnell was noted in deceptive activities, trying to lure investors into some of his projects by using false statements and misappropriation of funds. He was as well involved into another lawsuit against one more company, Coin Drop Markets.
The CFTC claimed that the customers who paid Mr. McDonnell and his partners for receiving a professional advice on crypto, weren’t sent any advice. And Coin Drops was even not registered with the authority, which is a breach against the valid legislation.