Federal regulators have charged Dwayne Golden of Florida, along with three other individuals, in a massive cryptocurrency fraud scheme that allegedly defrauded investors of over $44 million. The Commodity Futures Trading Commission (CFTC) filed a civil enforcement action in the U.S. District Court for the Eastern District of New York on Tuesday, accusing Golden, Jatin Patel of India, Marquis Egerton of North Carolina, and Gregory Aggesen of New York of operating Ponzi schemes involving Bitcoin.
The CFTC alleges that the defendants operated websites – Empowercoin, Ecoinplus, and JetCoin – promising guaranteed daily profits through professional Bitcoin trading. However, investigators claim the websites were used to solicit over $23 million in Bitcoin through Empowercoin and Ecoinplus, and an additional $21 million through JetCoin. Instead of trading the funds, the defendants are accused of misappropriating the Bitcoin or using new investor funds to pay earlier investors, a classic hallmark of a Ponzi scheme.
According to the complaint, Dwayne Golden, Jatin Patel, and Marquis Egerton misappropriated approximately $9.8 million through Empowercoin and Ecoinplus. Golden, Patel, Aggesen, and an accomplice allegedly misappropriated around $7.8 million from the JetCoin website. The CFTC is seeking restitution, disgorgement of ill-gotten gains, civil monetary penalties, and permanent bans from trading and registration. They also request a permanent injunction to prevent further violations of commodity trading laws.
In a parallel criminal case filed Tuesday, Dwayne Golden, Marquis Egerton, and Gregory Aggesen were charged with wire fraud and money laundering in the U.S. District Court for the Eastern District of New York. A separate individual faces charges of obstruction of justice. The case, United States v. Golden, No. 22 cr. 88, is proceeding alongside the CFTC’s civil action.
The CFTC acknowledged the assistance of the U.S. Attorney’s Office for the Eastern District of New York, the Federal Bureau of Investigation, the Federal Trade Commission, and the UK Financial Conduct Authority in the investigation. Acting Director of Enforcement Vincent McGonagle warned that fraudsters are continually devising new schemes, particularly in the digital asset space.
Customers who believe they may have been victimized are encouraged to report suspicious activity to the CFTC via its toll-free hotline (866-FON-CFTC), online tip form, or the Whistleblower Office.
Source: CFTC.gov
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