Fraudulent projects are not uncommon in the world of blockchain and cryptocurrency. In this regard, CabbageTech is one of the more recent scams to have gained a lot of attention within the tech-world over the past couple of weeks.
CabbageTech is Put to Rest
It is always unfortunate when people lose money because of an illicit venture operating within the cryptocurrency space. While CabbageTech may not be on the same level as some of the other notorious scams that have plagued the crypto world in recent times, it has still cost a lot of people some serious money.
For CabbageTech, the final nail has been put in the coffin as founder Patrick McDonnell lost a court case against the CFTC, effectively halting any further company operations.
About the Case
The hearing took place in Brooklyn earlier this week, wherein McDonnell faced charges of violating the Commodity Exchange Act. The CFTC sought a penalty of $871,287, as well as an additional restitution of nearly $300,000. Additionally, it seems as though the US District Judge presiding over the case agreed with the CFTC and banned McDonnell from future trading of cryptocurrencies.
Things began to unravel for CabbageTech when the company was allegedly hacked in June earlier this year. From the very start, McDonnell had made it clear that he would not be compensating any of his company’s investors. However, during the trial, it came to light that the hack was devised by McDonnell himself in order to defraud his customers.
CabbageTech investors will surely be pleased with the verdict– assuming that McDonnell pays all of the penalties and restitution in a timely fashion. This case, however, is another example of why blindly investing in a cryptocurrency service is always a bad idea.
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