The US SEC and the OSC Allege Cryptobontix, Arbitrade Misappropriating Investor Funds
The Securities and Exchange Commission (SEC) of the United States and the Ontario Securities Commission (OSC) have both brought concurrent fraud charges against Arbitrade and Cryptobonix, as well as their executives.
The regulators believe that the two companies, together with CEOs Troy Hogg, James Goldberg, Stephen Braverman, and Max Barber, a self-proclaimed international gold trader, engaged in a pump-and-dump fraud using the crypto token Dignity (DIG).
According to the agencies, between May 2018 and January 2019, Cryptobontix falsely announced that Arbitrade had purchased and received $10 billion in gold and that the company planned to back its DIG tokens with a $1 gold peg.
The companies reportedly assured investors that an audit had been done by professional accounting firms, which verified the gold. However, regulators claim that the purchase announcements were a ruse to sell DIG tokens at an inflated price, culminating in the sale of $36.8 million in DIG.
The OSC further claimed that Hogg and the firms utilized investor monies for non-DIG token-related reasons, including real estate acquisitions and payments to companies he owned. It also points out that Hogg failed to register a DIG token sale with the OSC.
According to their assertions, the OSC and SEC worked together on parallel investigations. The authorities are seeking court orders in their various countries to suspend the enterprises, force them to repay ill-gotten riches, prevent the executives and entities from holding similar roles in the future, and pay unspecified monetary penalties.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
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The US SEC and the OSC Allege Cryptobontix, Arbitrade Misappropriating Investor Funds
The Securities and Exchange Commission (SEC) of the United States and the Ontario Securities Commission (OSC) have both brought concurrent fraud charges against Arbitrade and Cryptobonix, as well as their executives.
The regulators believe that the two companies, together with CEOs Troy Hogg, James Goldberg, Stephen Braverman, and Max Barber, a self-proclaimed international gold trader, engaged in a pump-and-dump fraud using the crypto token Dignity (DIG).
According to the agencies, between May 2018 and January 2019, Cryptobontix falsely announced that Arbitrade had purchased and received $10 billion in gold and that the company planned to back its DIG tokens with a $1 gold peg.
The companies reportedly assured investors that an audit had been done by professional accounting firms, which verified the gold. However, regulators claim that the purchase announcements were a ruse to sell DIG tokens at an inflated price, culminating in the sale of $36.8 million in DIG.
The OSC further claimed that Hogg and the firms utilized investor monies for non-DIG token-related reasons, including real estate acquisitions and payments to companies he owned. It also points out that Hogg failed to register a DIG token sale with the OSC.
According to their assertions, the OSC and SEC worked together on parallel investigations. The authorities are seeking court orders in their various countries to suspend the enterprises, force them to repay ill-gotten riches, prevent the executives and entities from holding similar roles in the future, and pay unspecified monetary penalties.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
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