Ken Chigbo
Independent Analyst
- Judge Reed C. O’Connor of the U.S. District Court for the Northern District of Texas filed an Order and Default Judgment on a Bitcoin scam.
- Two U.S. defendants scammed the innocent, they misrepresented themselves as traders and portfolio managers.
Two defendants in the United States have been ordered to pay $400,000 for conducting a fraudulent scheme to collate Bitcoin (BTC) from members of the public, as a Texas Federal Court has ordered, which was announced by the United States Commodity Futures Trading Commission (CFTC).
It was alleged that U.S. citizens Morgan Hunt and Kim Hecroft had been engaging in a fraudulent scheme to collate Bitcoin from the innocent public members to invest in trading products such as; binary options, diamonds and foreign currency contracts, according to Judge Reed C. O’Connor of the U.S. District Court for the Northern District of Texas.
In terms of the order it claims that: the defendants had made false claims that they would use customer funds to invest in trading for the benefit of the customers. They went as far as misrepresenting their experience and track record as traders and portfolio managers, falsely told customers that they could not withdraw their purported investment profits without first paying a tax to the CFTC, and misappropriated customer funds.
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