Federal regulators file fraud charges against three bitcoin operators

Bitcoin Cash
Following an already rough month for bitcoin, three U.S. virtual currency operators have been charged with fraud by the United States Commodity Futures Trading Commission (CFTC). The CFTC alleges that CabbageTech, Entrepreneurs Headquarters Ltd., and one unnamed bitcoin operator have engaged in fraud, misappropriation of funds, and misrepresentation, causing significant financial harm to investors.

The complaint goes on to allege that Patrick K. McDonnell and his company, CabbageTech, doing business as Coin Drop Markets, made false promises to investors. The CFTC alleges that Coin Drop Markets promised bitcoin trading advice to investors as well as bitcoin purchasing and trading on investors’ behalf. The complaint goes on to allege that Coin Drop Markets never delivered on those promises, and investors never saw their money again after handing it over to Coin Drop Markets.

“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,” a statement from the CFTC reads. “In reality, as alleged, customers only bought into the Defendants’ fraudulent scheme.”

The second complaint, filed against Dillon Michael Dean and his company, Entrepreneurs Headquarters Ltd., alleges a more complicated Ponzi-type scheme using cryptocurrencies. The CFTC alleges that Entrepreneurs Headquarters Ltd. solicited bitcoin from investors with promises that their investments would be pooled and traded. Instead, the complaint alleges that the company took more than $1.1 million in bitcoin from over 600 investors and promised high rates of return which the company never delivered on. Instead, the company allegedly used investors money to pay other investors, like a high-tech Ponzi scheme.

“Potential pool participants were solicited to invest with Defendants by false claims of trading expertise and promises of high rates of return. The Complaint further alleges that, rather than convert customers’ Bitcoin to fiat currency to invest in binary options contracts, as promised, Defendants misappropriated their customers’ funds, including by using the funds to pay other customers, in the manner of a Ponzi scheme,” a statement from the CFTC reads.

These are the first such actions the CFTC has filed since it initially authorized bitcoin futures trading on December 18, 2017.

Gaming

Fortnite V-Bucks being used by criminals for money laundering on dark web

Criminals are using Fortnite's V-Bucks for money laundering schemes on the dark web. Epic Games, apparently, is not doing enough to prevent the game from being used for the illegal activity.
Computing

It's not all free money. Here's what to know before you try to mine Bitcoin

Mining Bitcoin today is harder than it used to be, but if you have enough time, money, and cheap electricity, you can still turn a profit. Here's how to get started mining Bitcoin at home and in the cloud.
Mobile

Huawei in for a rough year as feds investigate alleged trade secrets theft

Huawei is also facing issues in the U.S., but it doesn't seem like that will end any time soon. According to a new report, the company is facing a federal investigation in the U.S. for allegedly stealing trade secrets.
Gaming

Here's everything you need to know to trade in 'Pokémon Go'

After literally years of waiting, Pokémon Go finally gives trainers the option to trade Pokémon with others. It's not easy, though, and the cost is quite high if you try trading with strangers.
Computing

Watch out for these top-10 mistakes people make when buying a laptop

Buying a new laptop is exciting, but you need to watch your footing. There are a number of pitfalls you need to avoid and we're here to help. Check out these top-10 laptop buying mistakes and how to avoid them.
Computing

Don't spend a fortune on a PC. These are the best laptops under $300

Buying a laptop needn't mean spending a fortune. If you're just looking to browse the internet, answer emails, and watch Netflix, you can pick up a great laptop at a great price. These are the best laptops under $300.
Product Review

LG Gram 14 proves 2-in-1 laptops don’t need to sacrifice battery for light weight

The LG Gram 14 2-in-1 aims to be very light for a laptop that converts to a tablet. And it is. But it doesn’t skimp on the battery, and so it lasts a very long time on a charge.
Computing

Dell XPS 13 vs. Asus Zenbook 13: In battle of champions, who will be the victor?

The ZenBook 13 UX333 continues Asus's tradition of offering great budget-oriented 13-inch laptop offerings. Does this affordable machine offer enough value to compete with the excellent Dell XPS 13?
Gaming

Take a trip to a new virtual world with one of these awesome HTC Vive games

So you’re considering an HTC Vive, but don't know which games to get? Our list of 25 of the best HTC Vive games will help you out, whether you're into rhythm-based gaming, interstellar dogfights, or something else entirely.
Computing

The Asus ZenBook 13 offers more value and performance than Apple's MacBook Air

The Asus ZenBook 13 UX333 is the latest in that company's excellent "budget" laptop line, and it looks and feels better than ever. How does it compare to Apple's latest MacBook Air?
Computing

AMD Radeon VII will support DLSS-like upscaling developed by Microsoft

AMD's Radeon VII has shown promise with early tests of an open DLSS-like technology developed by Microsoft called DirectML. It would provide similar upscale features, but none of the locks on hardware choice.
Computing

You could be gaming on AMD’s Navi graphics card before the end of the summer

If you're waiting for a new graphics card from AMD that doesn't cost $700, you may have to wait for Navi. But that card may not be far away, with new rumors suggesting we could see a July launch.
Computing

Is AMD's Navi back on track for 2019? Here's everything you need to know

With a reported launch in 2019, AMD is focusing on the mid-range market with its next-generation Navi GPU. Billed as a successor to Polaris, Navi promises to deliver better performance to consoles, like Sony's PlayStation 5.
Computing

Cortana wants to be friends with Alexa and Google Assistant

Microsoft no longer wants to compete against Amazon's Alexa and Google's Assistant in the digital assistant space. Instead, it wants to transform Cortana into a skill that can be integrated into other digital assistants.