SEC is suing 5 people who sponsor the $ 2 billion Bitconnect fraud project

The US Securities and Exchange Commission (SEC) has brought charges against five people for alleged involvement in the Ponzi scheme Bitconnect, which collapsed in 2018.

According to the Letter of complaint of the SEC, which was filed in the U.S. Southern District Court between January 2017 and January 2018, Bitconnect used a network of promoters to offer over $ 2 billion worth of security tokens under federal securities laws.

“We allege these defendants illegally sold unregistered digital security tokens by actively promoting the Bitconnect loan program to retail investors,” said Lara Shalov Mehraban, assistant director of the SEC’s New York office. “We will try to hold accountable those who illegally benefit from digital assets.”

Bitconnect collapsed in 2018 after state regulators in Texas and North Carolina filed cease and desist letters against the platform.

The SEC complaint accuses promoters such as Trevon Brown (aka Trevon James), Craig Grant, Ryan Maasen, and Michael Noble (aka Michael Crypto) with US addresses for violating the registration requirements of the US securities laws. The complaint also accuses Joshua Jeppesen of having supported and favored the Bitconnect token offer (BCC).

The SEC said in the statement that these people were promoting the benefits of investing in Bitconnect’s loan program to potential investors, including using testimonials-style videos and postings on YouTube. According to the complaint, the promoters receive a percentage of the commission based on the size of the fundraiser.

After the complaint went public, Brown, one of the five defendants, tweeted, “I’ve just become a villain again.”

I’ve just become a villain again.

– Trevon James, founder of our.glass Crypto (@BitcoinTre) May 28, 2021

Although no criminal complaint has been filed, the FBI has been investigating Bitconnect for three years. Brown said in March 2018 that he spoke to FBI agents and that the federal investigator released a notice in 2019 urging victims to contact the agency.

A representative from the Justice Department’s southern New York office said no charges are likely to be brought.

Project promoters have also been arrested in other countries. Indian police arrested Divyesh Darji in 2018, while Australian authorities brought charges against John Bigatton last year.

Bao Cong

According to Coindesk

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