CFTC Wins Court Order Issued Against CabbageTech’s Patrick McDonnell
Update: CabbageTech's Patrick McDonnell Lawsuit Against CFTC is Over
The Commodities Futures Trading Commission (CFTC) successfully moved a U.S. District Court in New York to ban a cryptocurrency promoter from, as the judge stated, preying on investors in a “bold and vicious fraud.”
The parties, which include the CFTC and crypto company CabbageTech Corp., held a nonjury trial in July. The court concluded that the platform’s owner, Patrick McDonnell, operated a “boiler room” that illegally deprived large numbers of investors in different states and countries using “trickery, false statements and misappropriation of funds.”
The court also ordered McDonnell to pay $290,429 in restitution and $871,287 in penalties. McDonnell claimed that he could not afford to pay counsel and accordingly, represented himself briefly in propria persona. McDonnell ultimately stopped attending trial and the court granted default judgment in favor of the CFTC.
Here are our original news coverage of this case: