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Patrick McDonnell, a crypto scammer who called himself the Coyote of Wall Street has pleaded guilty to a count of wire fraud to a U.S. District Judge.
The Coyote, who also used the name Jason Flack is believed to have conned victims through his company CabbageTech Corp over a period of three years. On social media, he had falsely claimed to have 8000 investors and had traded $50 million to lure people in. Through these lies he was able to convince unsuspecting victims to invest into crypto via him, only to then use the funds entrusted to him for his own purposes.
It is believed that he spent a total of $194,000 of his victim’s money. One of the most significant theft was of $164,000 from a man who is now at the centre of the case currently on-going. He informed him that it had increased to $274,000 when in fact, he had been keeping the funds for himself. It seems the operation was simple but effective. As a U.S. attorney for the Eastern District of New York pointed out, “McDonnell has admitted that he used old-fashioned deception to defraud investors seeking to trade 21st-century currencies.”
This was the second such example of McDonnell illicit behaviour through the use of crypto. He had previously lied about his website getting hacked in June 2017, for which he received a digital asset trading ban and a substantial fine. This time around though the consequences may be more severe as he faces up to two years in prison.