SEC reached a settlement with 3 Bitconnect promoters for over $12 million but the case is not over
The United States Securities and Exchange Commission (SEC) has issued a fine for those promoting the Bitconnect cryptocurrency Ponzi project. According to the official procedural release, Joshua Jeppesen and Michael Noble were processed as defendants. Laura Mascola, Jeppesen’s partner, was being processed as a relief defendant.
Joshua Jeppesen’s information
SEC obtains judgments for $12 million against Bitconnect promoters
The cryptocurrency world is nearing the end of one of its darkest – and to some extent, weirdest – chapters as the SEC agreed to a settlement of more than $12 million from defendants Joshua Jeppesen, Michael Noble, and Laura Mascola, accused of being a key part of Bitconnect, the most famous Ponzi scheme in the history of the crypto sphere.
Before the 2017 crypto bull run, the Bitconnect Ponzi project, founded in 2016, allowing users to lend Bitconnect Coin (BCC) for high yields, was already showing signs of a scam. The Ponzi accusations started to gain momentum when Bitconnect shut down the earning platform on January 16, 2018.
The SEC introduced a Complaint on May 28, 2021, against Jeppesen, Noble, and Mascola. On the same document, the agency included other names like Ryan Maasen, Graig Grant, and the more popular Trevon Jones. The settlement does not include the latest three names, which means some files are still open, and the investigation has not ceased. The FBI is still collecting as much information as possible even to this day.
The SEC accuses Bitconnect and its promoters of running a $2 billion operation that facilitated the purchasing and selling unregistered securities.
“On August 13, 2021, the United States District Court for the Southern District of New York entered a judgment against Michael Noble (a.k.a. Michael Crypto) and a final judgment against Joshua Jeppesen for their involvement with BitConnect and the promotion of its lending program”, the SEC announcement noted.
“The court also entered a final judgment against Laura Mascola as a relief defendant. According to the judgments, the defendants and relief defendants have been ordered to collectively pay more than $3.5 million and 190 Bitcoin in disgorgement and prejudgment interest”, the SEC explains that it asked for Bitcoin and American dollars as two separate payment methods.
Reportedly, Jeppesen will have to pay $3,039,485 in disgorgement and prejudgment interest, 190 BTC in disgorgement, and a $150,000 penalty. He must also provide access to a Bitcoin wallet to meet his obligation to pay the owed compensation in crypto. Michael Nobble will pay an unspecified amount for discontent, advance interest, and civil penalties. The court will then determine the amount. Mascola shall pay $576,358 in disgorgement and prejudgment interest.
The SEC’s press release detailed that the investigation into Bitconnect is still ongoing and conducted by the U.S. regulator’s Retail Strategy Task Force.
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