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CabbageTech Convict Patrick McDonnell implicated on nine counts


The attorney for Eastern District of New York, Richard P. Donoghue recently revealed a nine-count charge against Patrick McDonnell. The news came in light through a press release from the Department of Justice (DoJ). 

Earlier, McDonnell- the owner, and operator of the investment firm CabbageTech was implicated over cheating cryptocurrency investors. 

Donoghue said in the press release:

“As alleged, the defendant defrauded investors by making false promises and sending them fraudulent balance statements, hiding the fact that he was stealing their money for his personal use.”

The statement further mentioned that McDonnell had purportedly posed as an experienced crypto trader. He duped several investors with his false trading pieces of advice, also he purchased and traded crypto on their behalf. 

Per the Justice, the firm didn’t provide any investment services and sent the investors false bank records. Furthermore, when clients requested withdrawing their money, he made a series of excuses for why he could not pay them at that time.

McDonnell reportedly defrauded investors of $194,000 in U.S. dollars, 4.41 Bitcoin ($17,551), 206 Litecoin ($12,215), 620 Ethereum Classic ($2,914) and 1,342,634 Verge ($9,035). 

Per, the DoJ, McDonnell will face 20 years in prison if found. McDonnell briefly presented him in court, citing the reason he could not afford legal counsel, he stopped attending the proceedings. 

Donoghue solicits the participation of the Commodity Futures Trading Commission (CFTC) in the investigation. In August last year, CFTC won a court order to permanently ban McDonnell. Also, the judge ruled that McDonnell was operating a “boiler room” to defraud investors and had then ordered him to repay the investments plus penalties.

Crypto Crimes on a Rise

On 23rd March, CoinMarketFeed reported, The Indian police arrested four more suspects involved in a crypto scam which managed to steal more than 1 billion rupees, in crypto. 

Per the report, the group launched a cryptocurrency named ‘’Cashcoin’’. The suspects duped the investors by saying that, they will double their investments. 

Suspects Ashok Goyal Jaipuria, Asif Malpani, Baljit Singh Saini and Pradeep Arora from Delhi, have been arrested from Delhi. Also, Goyal’s bank accounts have been frozen. Furthermore, an unnamed Bollywood Actor will also be subject to investigation. 

Also, Crypto analytics company Chainalysis released a report on January 23, stating that the value of Ether stolen via scams reached $36 million 2018. The report also revealed that over 2,000 Ethereum scam addresses got funds from almost 40,000 unique users. Furthermore, 75 percent of this scam activity took place in  2018 alone.