SEC Charges Trade Coin Club For Nearly $300 Million In A Crypto Ponzi Scheme
The Securities and Exchange Commission (SEC) filed a lawsuit against Trade Coin Club’s owners, alleging that it is a sizable cryptocurrency Ponzi scheme.
The minimum daily profits of 0.35% that Trade Coin Club guaranteed to investors were based on a trading bot’s continuous, high-speed microtransactions. In contrast, the complaint claims that investor withdrawals were compensated completely with investor deposits.
In its allegations, the SEC describes a scam that generated approximately 82,000 Bitcoin between 2016 and 2018. The commission calculated that the entire value of the Bitcoin received at the time was more than $295 million.
The federal agency filed charges against Jonathan Tetreault, Keleionalani Akana Taylor, Joff Paradise, and Douver Torres Braga for their alleged participation in the multi-level marketing program.
David Hirsch, head of the Crypto Assets and Cyber Unit within the Enforcement Division, stated on Friday:
“We allege that Braga used Trade Coin Club to steal hundreds of millions from investors around the world and enrich himself by exploiting their interest in investing in digital assets.”
Charges include violating the federal securities laws’ anti-fraud and securities registration regulations, as well as the broker-dealer registration provisions. The four are also asked to repay the money that was raised.
The statement said that Tetreault agreed to settle the SEC‘s accusations without admitting or disputing the allegations.
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