SEC charged California promoter with conducting 2 unregistered securities offerings, raised $3.6M in Bitcoin
The U.S. Securities and Exchange Commission (SEC) has charged a California man named Ryan Ginster with two fraudulent and unregistered securities offerings.
SEC charges California promoter over allegedly fraudulent Bitcoin schemes
By hosting platforms that allegedly solicited Bitcoin and promised fake profits, Ginster conducted two unregistered and fraudulent securities offerings, raising approximately $3.6 million in Bitcoin through the MyMicroProfits.com and Social Profimatic websites.
In both cases, Ginster promises that cryptocurrency trading and advertising arbitrage would yield what the SEC called astronomical rates of return for customers. The SEC also claims Ginster misappropriated at least $1 million in funds for personal expenses such as tax payments, housing expenses, and credit card bills.
The Commission filed a complaint in the United States District Court for the Central District of California, accusing Ginster of violating the registration and anti-fraud rules of the Securities Act of 1933 and the Securities Exchange Act of 1934.
As a result, the agency is seeking permanent sanctions against Ginster, as well as civil and grievance penalties.
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