According to the valid source from Bloomberg as on 24th August, the triumph of the U.S. Commodities Future Trading Commission (CFTC) against New York-based Cabbage Tech Corp to prevent it for executing cryptocurrency based bold and vicious fraud.
Patrick McDonnell, a promoter, and operator of Cabbage Tech Corp was charged for executing various fraud and misappropriation pertaining to certain transactions like buying and trading of Bitcoin (BTC) as well as Litecoin (LTC). While facing the situation, McDonnell raised his voice against Commodities Future Trading Commission saying that CFTC did not have any control to execute such type of commercial operations. However, Jack B. Weinstein, District Judge of New York declined his claim.
McDonnel was believed to have circulated false statements in order to attract investors by misappropriating their funds. He was condemned by Weinstein to execute such kind of fraudulent activities. Based on the court judgment given by Weinstein, McDonnell is required to pay $290,429 as indemnification and $871,287 as punishment. Since CabbageTech was not able to afford a lawyer to pay for counsel, McDonnell stopped appearing in court especially when the trial was going on.
Besides this, U.S. Commodities Future Commission claimed McDonnell to have involved in a various lawsuit against Coin Drop Markets. The CFTC further claims that McDonnell ambiguously closed Coin Drop’s website by not providing the advice that the customers had already paid for and, McDonnell was not able to respond to customers.
There is an immense need in order to craft and apply stringent regulations in place by enabling the U.S. based Securities and Exchange Commission (SEC) and CFTC to execute such laws & regulations in order to regulate the cryptocurrency market fairly and transparently. So that none of the stakeholders involved in the process would be inflicted by such fraudulent participants and companies that lure investors and take away their money.
Chirs Giancarlo, in May this year said in his statement, “he doesn’t see comprehensive crypto legislation coming from the federal level in the near future, pointing out that the statutes by which the CFTC is operating were written in 1935.” He further added that “embracing a modern innovation like Bitcoin within terms invented decades ago will take time”.
Let us not forget that either capital markets or crypto markets, there has to be certain laws and regulations in place that streamline the entire process ethically thereby adding value to all those stakeholders involved in an entire ecosystem!!