The US Securities and Exchange Commission (SEC) filed a lawsuit against five individuals involved in the recent BitConnect fraud, with both promoting and engaging in fraudulent activity. And sale of unregistered securities
BitConnect is a popular crypto-affiliate sharing chain that has defrauded investors for billions of dollars. It has become one of the biggest frauds in the crypto industry.
The SEC claims the five defendants helped market BitConnect unregistered securities and raised more than $ 2 billion from retail investors.
The five defendants consisted of 1. Trevon Brown (aka Trevon James), 2. Craig Grant, 3. Ryan Maasen, 4. Michael Noble (also known as Michael Crypto), and Joshua Jeppese.
According to this filing, BitConnect has asked all five defendants to promote and sell tokens for “Loan Program” through social media channels, conferences and advertisements by reviewing. Between January 2017 and January 2018.
The SEC claims that all five defendants have broken securities laws by properly promoting and selling securities that are not registered with the agency.
“We have accused all five defendants of selling digital securities. That are not registered by promoting BitConnect’s lending program to retail investors. We will find anyone who is illegally seeking profit. By leveraging the public’s interest in digital assets to be accountable, ”said Lara Shalov Mehraban, Deputy Regional Director for the SEC, US Office of New York.
And the SEC is looking for additional ways to take action against the defendants, such as temporary protection measures (Injunctive Relief), to compensate for the benefits and interest. (disgorgement plus interest) and additional civil sanctions
Meanwhile, in 2020, the Australian Corporate Regulators Issued a ban on Australian affiliates with BitConnect. From any black money In the financial sector As it is also associated with this fraudulent BitConnect
Translated by: Phongsaphakchana