According to a recent official press released, the CFTC filed a complaint within the U.S. District Court for the Northern District of Texas — charges defendants with running two illicit businesses and misleading practices to encourage public to invest in leveraged or margined foreign currency contracts, like forex, binary options, and diamonds.
The first suspect named ‘Morgan Hunt’, is reportedly from Arlington, Texas, and owns the firm named ‘Diamonds Trading Investment House’ while the second suspect, ‘Kim Hecroft’, supposedly of Baltimore, Maryland, reportedly ran primarily ‘Options Trading’.
In line with the press release, Hunt and Hecroft have faked a min. of 2 investors beginning from Jan. 2017. The defendants had allegedly been influenced to invest in trading for the benefits of their purchasers via email and Facebook.
Among the several accusations, the CFTC mentioned that the defendants were impersonating a CFTC investigator, along with using faked official documents to represent as the CFTC’s General Counsel with CFTC’s official Seal as a pace of the scam. Whereas the CFTC isn’t truly concerned in any activity involving tax collection, the fraudsters reportedly impersonated CFTC officers so as to require tax payments on crypto accounts.
In a criticism to the court, the CFTC seeks restitution for the defrauded investors, projection of illegal profits, civil financial penalties, and permanent trading and registration bans, similarly as a permanent ban from any violations of CFTC rules along with the commodities exchange Act.
Earlier also, a U.S. administrative division court ruled that an alleged dishonest crypto token from the firm [My Big Coin Pay] was a commodity, delivering the case beneath CFTC rules.
Yesterday, another United States monetary regulator, the Securities and Exchange Commission [SEC], filed charges against international securities dealer 1pool for the alleged providing of Bitcoin-funded security-based swaps.