The Commodities Futures Trading Commission has sued two individuals and two companies for alleged commodities law violations and fraud in the cryptocurrency market.
The first case is against Dillon Michael Dean of Longmont, Colo., and his U.K.-registered company, the Entrepreneurs Headquarters Ltd. for allegedly soliciting at least $1.1 million from 600 investors in Bitcoin while failing to register with the CFTC.
The second case is against Patrick K. McDonnell, of Staten Island, N.Y., and his New York-based corporation CabbageTech, Corp. The case involves allegations of solicitation of Bitcoin, Litecoin and cash in exchange for investment advice. Both cases were filed in the U.S. District Court for the Eastern District of New York.
Separately, the CFTC and the SEC top enforcement officials issued a joint statement that in the cryptocurrency market, the agencies “will look beyond form, examine the substance of the activity and prosecute violations of the federal securities and commodities laws.”