A fraudster in New York was arrested and sentenced to 20 years in jail because of nine counts of wire fraud, serving as a warning to many people. Patrick McDonnell, or also known as Jason Flack, was said to have convinced other people to invest in a particular cryptocurrency by means of their Facebook and Twitter accounts. Instead, McDonnell stole the investors’ money for his own consumption by providing them with false balance data.
Believed to have conducted all his illegal operations from his Staten Island home, McDonnell was fined a huge $1 million last year. The court asked him to seek counsel, but he said he could not afford a lawyer. He was also banned from trading after making claims that his company website had become a victim of hacking and claimed he lost all investor funds.
Coindropmarkets and CabbageTech
McDonnell used his company Coindropmarkets and CabbageTech in order to lure investors into his scam. Proclaiming himself proudly as the Wolf of Wall Street before being caught, McDonnell was found to be lying when he said his websites were hacked.
The CabbageTech company was actually a name that was full of doubt and suspicion as the defendant used it to solicit investment money from the victims. McDonnell used his site to give advice and strategies for trading cryptocurrencies. However, as the federal law enforcers and the Postal Inspectors unmasked McDonnell, the self-proclaimed crypto trader expert is facing the threat of being taken to federal prison. Overall, he stole more than $250,000 from his clients, or a total of 4.41 BTC, 620 ETH classic tokens, 206 LTC. And 1,342,634 XVG.