The U.S. Securities and Exchange Commission on Friday said it charged five individuals for promoting an unlisted global digital asset offering that has raised more than $2 billion from individual investors.
SEC BitConnect allegedly established a global network of sponsors through referral commissions and used the network to sell securities without registration as required by federal securities laws, the SEC said.
The agency accused Trevon Brown, Craig Grant, Ryan Maasen and Michael Noble of sponsoring ads to prospective investors through YouTube videos.
Consultations for individuals cannot be immediately established.
The agency also charged Joshua Jeppesen, who represented the company at meetings and acted as a liaison between BitConnect and its sponsors.
BitConnect tells investors that they will use their money to trade and profit from Bitcoin’s volatility and promises to pay investors profits, which BitConnect promises could be as high as around 40% per month, the SEC. . said in charge
The SEC took the position that the initial coin offering was an offering of securities. Therefore, it must be subject to the agency’s offering rules. which requires companies Submit registration and disclosure documents
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