‘Vicious’ Crypto Fraudster Fined $1.1 Million, Slapped with Lifetime Trading Ba
A cryptocurrency trading firm and its principal have been fined as well as banned from any future trading in digital assets in a case filed by the Commodity Futures Trading Commission
In the landmark case targeting Cabbage Tech aka Coin Drop Markets and the firm’s principal, Patrick K. McDonnell, the New York Eastern District Court on Wednesday sided with the CFTC, who had accused the defendants of defrauding clients.
Initially reported by Law 360, U.S. District Judge Jack Weinstein ruled that Cabbage Tech and McDonnell flouted the Commodity Exchange Act by engaging in “egregious intentional violations” of federal regulations and law.
Over $1.1 Million in Penalties and Compensation
Besides a permanent injunction being slapped on the defendants, the defendants will also be required to pay a fine of approximately $1,161,716 – $871,287 in penalties and $290,429 in restitution.