On May 7, the US Federal Trade Commission (FTC) filed a lawsuit against Douglas Monaghan, a serial fraudster who used his dishonest earnings to buy Bitcoin.
$8 million to buy Bitcoins
The crime was committed last year, when Douglas Monahan promised consumers the sale of "high-tech" iBackPack backpacks. In this case, the goods did not fall into the hands of potential buyers, and Monahan invested all the money raised in Bitcoin.
Today, on May 7, Monahan was charged with theft and fraud, and the court found him guilty. The decision of the court announced Monero information service on Twitter. According to the information received, Douglas Monahan conducted three campaigns to raise funds and fake selling backpacks, which together amounted to $8 million of investments from buyers.
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Monahan was captured by law enforcement in Texas (USA) in May 2018. For almost the entire past year, investigative actions were carried out to prove the involvement and guilt of the suspect.
As it became known, the fraudster used a crowdfunding platform to find individuals interested in buying and investing.
"The defendant used a large share of the contributions for his personal purposes, such as making purchases of Bitcoins and withdrawing funds through ATMs (...) In addition, the money collected was used to pay off personal credit cards; for marketing efforts to collect additional funds from consumers; and for other business enterprises" – US Federal Trade Commission (FTC).
Douglas Monahan stole $8 million to buy Bitcoins and invest in cryptocurrency. Details about the term of imprisonment of the fraudster and the return of money to the victims are still unknown. Recall that today Bitcoin rose in price and crossed the psychological barrier of $6,000.
Editor: Yuliya Soroka