SEC Files Charges Against 4 Individuals in $295 Million Global Crypto Ponzi Scheme That defrauded Over 100,000 Investors
Four people have been prosecuted by the U.S. Securities and Exchange Commission (SEC) for their involvement in a global cryptocurrency Ponzi scheme that defrauded more than 100,000 investors worldwide. More than $295 million in Bitcoin were raised by the operation.
SEC Charges 4 People in $295M Global Crypto Ponzi Scheme That Duped Over 100,000 Investors
Four people have been charged by the U.S. Securities and Exchange Commission (SEC) for their roles in a fraudulent cryptocurrency Ponzi scheme.
According to the SEC, Trade Coin Club was “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.” Douver Torres Braga, Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault were allegedly involved.
According to the regulator, the multi-level marketing program Trade Coin Club was founded and run by Braga. It also guaranteed investors a minimum return of 0.35% daily “through the trading actions of a supposed crypto asset trading bot,” the SEC said. “Braga allegedly siphoned off investor funds for his benefit and to pay a network of worldwide Trade Coin Club promoters, including Paradise, Taylor, and Tetreault”.
According to the SEC, Braga got at least 8,396 Bitcoin from the investments and payments to Paradise, Taylor, and Tetreault totaling 238 and 735 bitcoins, respectively.
“We allege that Braga used Trade Coin Club to steal hundreds of millions from investors worldwide and enrich himself by exploiting their interest in investing in digital assets”, David Hirsch, chief of the SEC Enforcement Division’s Crypto Assets and Cyber Unit, commented. “To ensure our markets are fair and safe, we will continue to use blockchain tracing and analytical tools to aid us in pursuing individuals who perpetrate securities fraud,” he emphasized.
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