CFTC Director of Enforcement James McDonald said, “As alleged, the Defendants here preyed on customers interested in bitcoin and litecoin, promising them the opportunity to get the inside scoop on the next new thing and to benefit from the trading acumen of a supposed expert. In reality, as alleged, customers only bought into the Defendants’ fraudulent scheme.”
Ponzi scheme
Separately, the CFTC alleged that Dean and The Entrepreneur Headquarters Limited engaged in a binary options and bitcoin fraud scheme.
The regulator alleged that Dean and his company solicited $1.1 million worth of bitcoin from more than 600 customers. He allegedly promised to convert the bitcoins into fiat currency to invest on their behalf in a pooled investment vehicle. The defendant told customers that he will be trading commodity interests and binary options on their behalf. He promised them high returns.
Additionally, the CFTC alleged that Dean misappropriated customers’ funds. He used their money to pay other customers in the manner of a Ponzi scheme.
