Bitcoin, along with other digital tokens, has been frequently used in the past few months to entice people into scams, and according to a recent report dated for July 9, 2018, one such digital coin swindler has been effectually sued by the United States Commodity Futures Trading Commission (CFTC), in relation to his criminal Bitcoin Investment Program.
As per the information, he was carrying on with this illegal service since April 2017 and was using it to extricate tens of thousands of dollars from the innocent investors.
The Colorado Resident, Dillon Michael Dean and his Company, The Entrepreneurs Headquarters Limited, have been asked to pay a price of more than $1.9 million as a penalty.
In accordance to the order delivered by Judge Sandra J. Feuerstein of the U.S. District Court for the Eastern District of New York, the accused fraudulently seeked digital tokens from innocents by putting up fake promises of fund pooling and investment in binary options.
In this way, Dean pocketed all the funds collected from the customers and kept it for personal use without bringing it to the person’s knowledge. Also, it has been unveiled that unlike what he claimed, Dean had never been an authorized member of the CFTC as a Commodity Pool Operator (CPO) and Associated Person of a CPO, as necessitated by the law.
The court inferred that Dean has gathered a total of at least $499,264.04 through the ongoing scam period of more than a year. They have declared that the amount obtained in Bitcoin investor funds is from not less than 127 people, all of whom were fooled by his assurance to convert their Bitcoin to fiat and then invest it in their stead.
It was recently brought to the attention of the court that Dean never actually indulged in trade on behalf of his customers. He merely utilized the social platforms to fish for his victims. He misused Facebook posts and YouTube videos promising inappropriately high trade returns and trapping innocent customers.
As for the fine, Dean and his company (TEH), have been ordered by the court to pay an amount of $432,184.79 in restitution to the investors he cheated and a $1,497,792.12 civil monetary penalty. Additionally, a lifelong ban has been implemented on Dean and TEH by the court. The accused has been strictly warned against any kind of future infraction of a CFTC Act as well as CFTC regulation.
The agency, however, informed the public about the uncertainty of the recovery of the funds obtained through deception, even after imposing the restitution order. It is a matter completely dependant on the financial status of the litigant.