Five promoters of BitConnect, a ponzi scheme, were accused by the US Securities and Exchange Commission of violating federal securities laws.
Sec Official website writes:
“According to the SEC’s complaint, filed in the United States District Court for the Southern District of New York, from approximately January 2017 to January 2018, BitConnect used a network of promoters, including U.S.-based Trevon Brown (a.k.a. Trevon James), Craig Grant, Ryan Maasen, and Michael Noble (a.k.a. Michael Crypto) to market and sell securities in its “lending program.” The SEC’s complaint alleges that these promoters offered and sold the securities without registering the securities offering with the Commission, and without being registered as broker-dealers with the Commission, as required by the federal securities laws.”
Lara Shalov Mehraban, the agency’s deputy district director, claims that those who illegally took advantage of the public interest in cryptocurrencies will be held responsible:
We claim that these defendants illegally sold unregistered digital asset securities by actively promoting the BitConnect lending program to retail investors. We will continue to hold accountable those who make a profit illegally by taking advantage of the public’s interest in digital assets.
This $2 billion fraud exploded on January 17, 2018, when it ended lending and trading services. The BCC token collapsed over 90% within hours at that time.
The BitConnect platform earned a reputation as a platform that allowed its customers to lend cryptocurrencies to generate large amounts of revenue. However, it soon became clear that Bitconnect was a fraud.
Read More On SEC Official Website: https://www.sec.gov/news/press-release/2021-90