The U.S. Securities and Exchange Commission (SEC) has charged 4 folks for his or her roles in a world cryptocurrency Ponzi scheme that duped greater than 100,000 traders worldwide. The scheme raised greater than $295 million in bitcoin.
SEC Says ‘Trade Coin Club’ Is a Crypto Ponzi Scheme
The U.S. Securities and Exchange Commission (SEC) introduced costs towards 4 folks for his or her roles in a fraudulent crypto Ponzi scheme Friday.
Douver Torres Braga, Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault have been allegedly concerned in Trade Coin Club, “a fraudulent crypto Ponzi scheme that raised more than 82,000 bitcoin, valued at $295 million at the time, from more than 100,000 investors worldwide,” the SEC described.
Braga created and managed Trade Coin Club, the regulator defined, including that the multi-level advertising program promised traders a minimal return of 0.35% each day “from the trading activities of a purported crypto asset trading bot.” Noting that the scheme operated from 2016 by way of 2018, the SEC detailed:
Braga allegedly siphoned off investor funds for his personal profit and to pay a community of worldwide Trade Coin Club promoters, together with Paradise, Taylor, and Tetreault.
The SEC alleged that Braga personally obtained no less than 8,396 bitcoins of the quantities invested, Paradise obtained 238 bitcoins, Taylor obtained 735 bitcoins, and Tetreault obtained 158 bitcoins.
David Hirsch, chief of the SEC Enforcement Division’s Crypto Assets and Cyber Unit, commented:
We allege that Braga used Trade Coin Club to steal lots of of tens of millions from traders world wide and enrich himself by exploiting their curiosity in investing in digital belongings.
“To ensure our markets are fair and safe, we will continue to use blockchain tracing and analytical tools to aid us in the pursuit of individuals who perpetrate securities fraud,” he emphasised.
The SEC alleged that Braga and Paradise violated the antifraud and securities registration provisions. Paradise moreover violated broker-dealer registration provisions of the federal securities legal guidelines. Meanwhile, Taylor violated the securities and broker-dealer registration provisions. The grievance seeks injunctive reduction, disgorgement, and civil penalties.
The securities regulator additionally filed a second grievance alleging that Tetreault violated the securities and broker-dealer registration provisions. Without admitting or denying the allegations, he agreed to settle the costs.
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