The United States Securities and Exchange Commission (SEC) has filed a lawsuit against five people involved in BitConnect for promoting and selling unregistered securities.
- BitConnect is a famous cryptocurrency Ponzi scheme that steals billions of dollars from investors, making it one of the biggest scams in the crypto industry.
- The SEC claims the defendants helped market BitConnect’s global unregistered securities market by raising more than $ 2 billion from individual investors.
- The defendants are Trevon Brown (aka Trevon James), Craig Grant, Ryan Maasen, Michael Noble (also known as Michael Crypto) and Joshua Jeppesen, who are based in the United States.
- As a result of the lawsuit, BitConnect used the defendants to promote and sell their tokens in Social media “lending program”;, conferences and testimonials between January 2017 and January 2018.
- The regulator claimed the defendants violated federal securities laws by promoting and selling securities that were not registered with the board.
- “We accused these defendants of illegally selling unregistered digital asset securities by promoting the BitConnect lending program to retail investors. We will endeavor to be held accountable to those who illegally profit by taking advantage of the public interest in digital assets, ”said Lara Shalov Mehraban, regional deputy director of the SEC’s New York Regional Office.
- The SEC is seeking a reprieve for the discord with interest and civil penalties.
- Meanwhile, in 2020, Australia’s corporate regulators have banned local people from operating in the financial sector due to the notorious crypto scam – BitConnect.
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