The US Securities And Exchange Commission (SEC) has charged those responsible for an allegedly fraudulent crypto investment scheme worth $45 million. The Commission explained that the defendants made false claims that the scheme would “generate investment returns of more than 500,000 times for investors.”
SEC Moves Against Crypto Fraud Scheme
The US Securities And Exchange Commission (SEC) Revealed Wednesday It has taken action against crypto investment scheme creators Coindeal … and seven other individuals in connection to the $45 million fraud.
Describing Coindeal As “a brazen and far-reaching unregistered offering fraud carried out between at least 2018 and 2022,” The regulator’s detailed description read:
Coindeal… raised over $45 million through the sale of unregistered securities, to tens and thousands of investors around the world.
The SEC explained that promoters Neil Chandran, Garry Davidson, Michael Glaspie, Amy Mossel?, and Linda Knott “falsely claimed that investors could make outlandish profits by investing in a blockchain technology called Coindeal that would be worth trillions of dollars.” To a select group of wealthy and prominent buyers.
However, According to the regulator, no sale of Coindeal took place and no distributions to investors occurred. The defendants “collectively misappropriated millions of dollars of investor funds for personal use, and Chandran used investor funds to purchase items such as cars, real estate, and a boat,” the SEC wrote.
The AEO was also charged by securities watchdog Publishing Inc., Banner Co-Op Inc.. and Bannersgo LLC for their involvement in the fraudulent crypto-investment scheme.
Daniel Gregus, Director, SEC Chicago Regional Office, said:
We The defendants indicated that they had access to blockchain technology, and that investors would receive investment returns of more that 500,000.
The Director added: “As alleged in our complaint, in reality this was all just an elaborate scheme in which the defendants enriched themselves while deceiving tens of thousands of retail investors.”
In June The US was the most populous country in America last year. Department Of Justice (DOJ) Charged Chandran with three counts of wire fraud, and two counts each of money transactions with illegal proceeds in connection to the Coindeal crypto fraud scheme.
What What are your thoughts on the SEC action against Coindeal? Please let us know your thoughts in the comments section.
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