The U.S. Commodity Futures Trading Commission (CFTC) has filed a federal civil enforcement action this week against four men for allegedly conducting a $44 million bitcoin Ponzi scheme.
According to a CFTC news release, Dwayne Golden of Florida, Jatin Patel of India, Marquis Egerton of North Carolina and Gregory Aggesen of New York are charged with fraud for carrying out a Ponzi scheme involving bitcoin, fraudulently soliciting more than $44 million from investors and misappropriation of millions of dollars.
The commission says it is seeking 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 regulations.
Read more: PYMNTS Crypto Crime Series: Mt. Gox, the Mother of All Crypto Heists
“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.
According to the complaint, Golden, Patel, and Egerton allegedly operated the websites Empowercoin and Ecoinplus, which they used to fraudulently solicit individuals of more than $23 million of bitcoin. Meanwhile, Golden, Patel, Aggesen and an accomplice, operated the website JetCoin, which took in more than $21 million of bitcoin.
The CFTC alleges the websites promised customers their bitcoin would be traded by professionals, with…
