CFTC Charges 4 in $44M Bitcoin Scam
According to a CFTC press release, Dwayne Golden of Florida, Jatin Patel of India, Marquis Egerton of North Carolina, and Gregory Aggesen of New York have been charged with fraud for running a bitcoin-related Ponzi scheme, defrauding investors out of more than $44 million and misappropriating millions of dollars.
Restitution, disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC rules are among the remedies sought by the commission.
“This case illustrates how fraudsters never tire of devising schemes to separate people from their hard-earned money, and digital asset frauds are no exception,” said Acting Director of Enforcement Vincent McGonagle.
Golden, Patel, and Egerton reportedly ran the websites Empowercoin and Ecoinplus, which they used to defraud victims out of more than $23 million in bitcoin, according to the lawsuit. Meanwhile, Golden, Patel, Aggesen, and a co-conspirator ran the JetCoin website, which raked in almost $21 million in bitcoin.
According to the CFTC, the websites assured clients that their bitcoin would be traded by specialists and that daily gains would be guaranteed. According to the CTFC, the defendants either stole the bitcoin or used it to pay other investors.
Golden, Patel, and Egerton reportedly stole $9.8 million in bitcoin through Empowercoin and Ecoinplus, while Golden, Patel, Aggesen, and their accomplice allegedly misappropriated $7.8 million in bitcoin through JetCoin, according to the complaint.
According to the commission, Golden, Egerton, and Aggesen have also been charged with wire fraud, money laundering, and obstruction of justice in a separate federal criminal prosecution.