The US Commodity Futures Trading Commission (CFTC) made history this week when it successfully prosecuted a Bitcoin conman who had been running a scam cryptocurrency investment program, fleecing more than 100 victims out of large sums of money.
This week, the outcome of a groundbreaking case heard earlier this month was announced. What follows are the general details of the case and its outcome.
According to the Order and Default Judgment delivered by Judge Sandra J. Feuerstein of the U.S. District Court for the Eastern District of New York stated that on July 9, 2018, Dillon Michael Dean (pictured) of Longmont, CO, along with his company The Entrepreneurs Headquarters Limited dishonestly solicited members of the general public into Bitcoin investments by using false promises of pool funding as well as investments into binary options.
120 + Bitcoin Investors Scammed
Dean’s pitch to investors was that he could convert their Bitcoin into fiat currency, and then invest those funds on their behalf. However, in reality, after soliciting said funds from targeted investors, Dean then set about converting them for his own personal use without the investors’ knowledge or permission. Judge Feuerstein also stated that despite his claims to the contrary, Dean was never registered with the CFTC as a Commodity Pool Operator (CPO) and Associated Person of a CPO, as required by law.
The court heard that Dean began his scam operation in April 2017, and that he obtained at least $499,264.04 in Bitcoin funds from more than 120 people.
The court subsequently ordered Dean and The Entrepreneurs Headquarters Limited to pay the sum of $432,184.79 in restitution to the people he had conned, and in addition to pay a $1,497,792.12 civil monetary penalty. In addition, Judge Feuerstein imposed a permanent trading and registration ban on Dean and THE, and enjoined both defendants permanently from any future violations of CFTC regulations and the CFTC Act.