According to a recent official press released, the CFTC filed a complaint within theU.S. District Court for the Northern District ofTexas— charges defendants with running twoillicitbusinesses andmisleading practicesto encourage public to invest in leveraged or margined foreign currency contracts,likeforex, binaryoptions, and diamonds.
The firstsuspect named ‘Morgan Hunt’, is reportedly fromArlington, Texas, and ownsthe firmnamed ‘DiamondsTradingInvestment House’ while the secondsuspect, ‘Kim Hecroft’,supposedlyofBaltimore, Maryland, reportedly ranprimarily ‘Options Trading’.
In line with the press release, Hunt and Hecroft have fakeda min. of2investorsbeginningfromJan. 2017. The defendants had allegedly beeninfluenced to investintradingforthe benefitsof theirpurchasersvia email and Facebook.
Amongthe severalaccusations, the CFTC mentioned that the defendants were impersonating a CFTC investigator,along withusingfakedofficial documents torepresent as theCFTC’s General Counsel with CFTC’s official Seal asa paceof the scam.Whereasthe CFTCisn’ttrulyconcernedin any activity involvingtax collection, the fraudsters reportedly impersonated CFTCofficersso astorequiretax payments on crypto accounts.
In acriticismto the court, the CFTC seeks restitution for the defrauded investors,projectionofillegalprofits, civilfinancialpenalties, and permanenttradingand registration bans,similarlyas a permanent ban fromanyviolations of CFTCrulesalong with thecommodities exchangeAct.
Earlieralso, a U.S.administrative divisioncourtruledthatanallegeddishonestcrypto token from the firm [MyBigCoin Pay] was acommodity,deliveringthe casebeneathCFTCrules.
Yesterday, another United Statesmonetaryregulator, the Securities and Exchange Commission [SEC], filed charges against international securities dealer 1pool for the allegedprovidingof Bitcoin-funded security-based swaps.