SEC ready to settle BitConnect advertisers

The U.S. Securities and Exchange Commission is expected to finalize a settlement with the infamous BitConnect stock market promoters who helped the platform raise more than $ 2 billion through video.

SEC ready to settle BitConnect advertisers

US Judge John G. Koeltl has announced that he will likely sign the verdicts against four of the six defendants in the coming days for helping the Bitconnect platform raise and raise more than $ 2 billion, like the legal news site Law360.com reported.

The SEC filed a lawsuit against six people last May, accusing them of receiving millions of dollars in commissions and payments to promote BitConnect’s unregistered securities before the exchange closed in January 2018. One of the individuals reportedly earned more than $ 2.6 million in commissions for her recruiting and promotional activities.

The judge said the settlements were legal but needed minor changes to make them “carefully correct”.

The UK-based platform has drawn the ire of regulators in Texas and North Carolina for launching a program to lure crypto borrowers with “risk-free” daily returns “by promising to lend Bitcoin (BTC) and the exchange’s own token BitConnect to trade coin.

BitConnect informed participants at the time that they would close the loan program, according to which the investors recruited by the 6 defendants could not withdraw their funds from the platform and the value of the tokens has decreased by 92% according to the SEC.

Among other things, Massachusetts national BitConnect promoter Joshua Jeppesen is said to pay more than $ 3 million for the settlement, while his fiancée, the defendant Laura Mascola, is expected to repay the $ 576,000 she received from Jeppesen. Another defendant, Oklahoma Area Promoter Ryan Maasen, had to pay $ 526,000 to reach a settlement.

The fourth defendant, California region promoter Michael Noble, told Judge Koeltl that he was “very cooperative” with the SEC and the US Department of Justice, but that he “locked up” with regulators to settle accounts.

Bitconnect works as a trust fund, meaning investors bring money to other people to do business and after a certain period of time they receive high profits (30-40% / month) and capital. This interest rate is the factor that drives many people to invest capital in Bitconnect when bank rates are only 7-8% / year and trust fund rates are only 10-15% / month. This form is also known as the credit model, an instrument for raising capital for investors.

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