The Securities and Exchange Commission (SEC) has filed a lawsuit against five individuals accused of promoting BitConnect, the now defunct Ponzi crypto scheme.
Regulators believe The platform’s “lending program” includes a $ 2 billion unregistered securities offering as the company is not a registered brokerage. Bitconnect first launched in 2016 and closed its main lending platform early in the year. In 2018, amid fraud allegations and warnings from regulators, the FBI sought out BitConnect potential victims in 2019.
At this time, the office A. The SEC is holding Trevon Brown, Craig Grant, Ryan Maasen and Michael Noble to consider alleged advertising on the merits of the platform’s lending program. They created a YouTube video showing their success using the platform to ask investors money according to the SEC complaint and receive a commission for their efforts.
Joshua Jeppesen is also the defendant in a lawsuit allegedly playing a liaison role between BitConnect and promoter Jeppesen representing BitConnect at the event.
“The SEC̵7;s indictment charged the defendant for violating the registration requirements of the Federal Securities Law and Jeppesen by assisting and supporting BitConnect’s offer and sale of unregistered securities,” the regulator said. In a statement
The lawsuit was filed in the U.S. District Court for the Southern District of New York. The agency is seeking relief orders with interest and civil penalties.
“We accuse these defendants of illegally selling unregistered digital asset securities by promoting the BitConnect lending program to retail investors,” Lara Shalov Mehraban, regional deputy director of the SEC’s New York Regional Office, said in a statement. “We will seek to be accountable to those who illegally profit by exploiting the public interest in digital assets.”
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