New York-based operator CabbageTech was sentenced to 33 months in prison after pleading guilty to cheating on investors in June last year.
Patrick McDonnel, also known as Jason Flack, was also sentenced to pay $ 224,352 in refund fees.
"Mr. McDonnell used his knowledge of virtual currencies to defraud investors. While he thought he could outwit the law enforcement his arrest and today's
[Read: CabbageTech owner charged with running $200K cryptocurrency and cash swindle]
As previously reported by Hard Fork, McDonnel was initially accused of at least 10 people from $ 194,000, 4.41 Bitcoin ($ 17,706.11), 206 Litecoi n ($ 12,520), 620 Ethereum Classic ($ 2,976) and 1,342,634 Rand (
He was indicted in a charge with nine charges that were brought before a federal court in March 1945 in New York had been canceled.
McDonnell's fraudulent operation ran from approximately November 2014 to January 2018.  During this time, McDonnell portrayed himself as an experienced virtual currency on social media promising investors whom he would advise on their behalf and buy cryptocurrency .
Sometime in May 2016, McDonnell made similar commitments to investors about his in states Iceland-based CabbageTech, Corp., also known as Coin Drop Markets
but neither McDonnell nor CabbageTech provides investment services.
Instead, McDonnell sent investors false documents showing that their investments were profitable. He then stole their money for personal use.
Published January 17, 2020 – 12:14 UTC