A few months ago the U.S. Commodity Futures Trading Commission (CFTC) charged a Staten Island-based company called Cabbage Tech with 'fraud and misappropriation' of funds based in Bitcoin and Litecoin. According to the CFTC, it revealed it had charged Patrick McDonnell and his company Cabbage Tech for crimes associated with allegedly promising big returns on trading advice, and lifetime trading advice memberships. The CFTC is looking for restitution of all of the funds solicited, and the case may also see a jury trial. This week news.Bitcoin.com spoke with Patrick McDonnell about the charges against him, and he told us the entire case is "politically motivated" and the charges against him have been "fabricated."     

Also read: Japan's SBI Unveils New Plans to Start an Exchange for Major Cryptocurrencies

One Man Against the CFTC and CME Group

Earlier this week news.Bitcoin.com spoke with Patrick McDonnell about his company Cabbage Tech and the charges made against his company this year stemming from the U.S. regulator the CFTC. McDonnell claims his innocence, and believes the charges against his company are falsified and he is being used as a scapegoat to bolster certain regulatory policy such as the approval of CME's recent futures markets. McDonnell says that CME is very much involved with the case against him, and he was even contacted by CME Group lawyers asking him to define bitcoin and virtual currencies as a 'commodity' over the telephone. McDonnell refused to say bitcoin is a commodity and the CFTC's definition of virtual currencies is one of his main arguments against the financial charges against him.     

Bitcoin.com (BC): Earlier this year Cabbage Tech (CTC) was charged with fraud and claimed to provide "300% returns in a week," according to the U.S. Commodity Futures Trading Commission (CFTC) statements. What can you tell our readers about yourself and this case?

Patrick McDonnell (PM): Cabbage Tech, Corp. "CTC" was not a digital currency company as described in the media; it accepted cryptocurrency as an alternative means of membership/subscription payment. CTC was a diversified membership-based, subscription type, informational service offering investment reporting and alerts on an array of traditional markets outside of cryptocurrency. At certain times many CTC cryptocurrency reports and alerts may have well exceeded 300%+ returns which is typical in this sector during altcoin season. Myself? I was a newsletter operator.

BC: What does CME Group and Bitcoin futures markets have to do with this case?

PM: My 'Defendant Statement' filed with the Court on April 25, 2018, explains the CME's involvement and motivation to join the CFTC in their deceptive plan to regulate bitcoin futures at any/all costs. The court documents can be read here, and more information can be read here.

Basically in my letter I write that in a strategic move to limit company/investor liability and correct their mistake of relying on the CFTC's 2015 claim that Bitcoin and Virtual Currencies fall under their scope. The Chicago Mercantile Exchange ("CME") was financially motivated to join the case on March 05, 2018 filing a MOTION for Leave to File Letter as Amicus Curiae by Chicago Mercantile Exchange Inc. per Jonathan L. Marcus a CME attorney.