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20 years in prison for organizing a crypto-pyramid

On June 21, a hearing in the case of Patrick McDonnell, who is accused of financial fraud and large-scale fraud, was held in a court in the Eastern District of New York. During the hearing, the accused fully admitted his guilt and now faces up to 20 years in prison.

Recall that Patrick is the organizer of the financial pyramid Coin Drop Markets (CDM) with which he appropriated at least $ 194,000, 4.41 BTC, 206 LTC, 620 ETC and 1,342,634 Verge. The defendant, also known under the pseudonym of Jason Flack, was not so long ago the head of CabbageTech, on whose behalf CDM operated.

According to the legend, the company was engaged in cryptocurrency trading, due to which it provided a huge profit for its investors (CDM promised up to 300% per week). In addition, McDonnell skillfully forged balance sheets, according to which the company conducted a profitable activity. In fact, attracted funds from new investors were used to pay out earlier customers. Thanks to this circulation of CDM referrals for some time kept afloat. In total, the company operated from November 2014 to January 2018.

As noted in court documents, Patrick used most of the investor funds for his own needs. At some point, the official website of the company and accounts in the social. networks have been removed, which, however, did not prevent the detention of a fraudster.

Nine different charges were brought against Patrick McDonnell, including securities fraud and electronic message fraud.

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