The Commodity Futures Deal Commission (CFTC) filed charges against two defendants for allegedly succeeding to a number of lengths in attempts to steal bitcoin.
The regulator announced tardy Friday that it was charging two individuals using the names Morgan Quest and Kim Hecroft for “fraudulent solicitation, impersonation of a CFTC investigator and forging CFTC authenticates” as part of an elaborate scheme to convince cryptocurrency investors to pay a fake tax in bitcoin to the defendants.
Harmonizing to a press release, Hunt, who claims to be of Arlington, Texas and may be doing corporation as Diamonds Trading Investment House, and Hecroft, who claims to be from Baltimore, Maryland and may be doing task as First Options Trading, “engaged in a fraudulent scheme to solicit bitcoin from colleagues of the public.”
Moreover, the two did so “through false or misleading representations or omissions,” corresponding to a release, which include impersonating a CFTC investigator and forging documents with an lawful CFTC seal and bearing the CFTC’s general counsel’s name.
The unite have successfully defrauded at least two customers, according to the release. At scantiest one of these victims was persuaded to send bitcoin to the pair.
Among the imputations, the release notes, is the claim that the defendants forged a document having that bitcoin investors needed to pay taxes to the regulator if they wished to absent oneself their bitcoin.
CFTC director of enforcement James McDonald revealed in a statement that “increased public awareness of the CFTC’s involvement in protecting the virtual currency markets has, unfortunately, provided new opportunities for bad actors.”
He supplemented:
“As alleged in the complaint, defendants sought to exploit public trust in the CFTC during forged documents purporting to be official CFTC memoranda requiring the payment of a tax on cryptocurrency accounts. The CFTC does not together taxes. The CFTC is on guard against fraudsters who try to take advantage of the CFTC’s position in order to cheat customers, and will take swift action against such misconduct.”
The CFTC is looking to solicit restitution for the victims, the disgorgement of any gains, penalties, a permanent trading and registration ban for each defendant and a invariable injunction against any further violations of the Commodity Exchange Act and agency decrees.
CFTC image via Shutterstock
The leader in blockchain news, CoinDesk is a atmosphere outlet that strives for the highest journalistic standards and abides by a finicky set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Guild, which invests in cryptocurrencies and blockchain startups.