CabbageTech CEO pleads guilty to cryptocurrency fraud

Patrick McDonnell, who ran CabbageTech Corp., has pleaded guilty to wire fraud in a scheme that defrauded at least ten cryptocurrency investors, according to an announcement on Friday from the US Attorney's office. 

Between November 2014 and January 2018, McDonnell posed as an experienced cryptocurrency trader, promising investors he would purchase and trade virtual currency on their behalf. However, he sent investors false balance statements and stole their money for his personal use, the Office said, amouting to at least $194,000 in fiat, 4.41 bitcoin, 206 litecoin, 620 ether classic and 1,342,634 verge tokens.

“McDonnell has admitted that he used old-fashioned deception to defraud investors seeking to trade 21st century currencies,” said Richard P. Donoghue, attorney for the Eastern District of New York.

McDonnell was arrested in March of this year and now faces up to 20 years in jail as well as forfeiture and restitution to his victims, according to Friday’s announcement.

Donoghue added that the Office and law enforcement partners will “continue to prosecute those who swindle the investing public to the full extent of the law.”