Cryptocurrency News

SEC charges $ 2 billion to illegally promote Bitconnect Ponzi

Three years and some unforgettable memories later, the Securities and Exchange Commission has announced that 5 individuals will face charges related to promoting the Bitconnect Ponzi scheme.

“The SEC complaint alleges that these promoters offered and sold securities without registering the offer of securities with the commission and as broker-dealers with the commission as required by federal securities laws,” the release It is written in

Promoters including Trayvon Brown, Craig Grant, Ryan Masen and Michael Noble are said to have advertised the virtues of creating “testimonial” style videos and publishing them on YouTube, sometimes to potential investors to invest in BitConnect’s loan program. Kiya once a day. ”In return for their promotional efforts, the affected and representatives were paid on a commission basis.

The release also named Joshua Jepsen as “a liaison between Bitconnect and promoters”.

Soon after the release, Trayvon Brown (better known as Trayvon James) posted a tweet in which he did not deny the allegations and said the community would “rally” around him.

“We will try to hold those accountable who illegally profit by taking advantage of the public interest in digital assets,” Associate Regional Director of the SEC’s New York Regional Office, Lara Shalov Mehraban, said in the release.

company, Which collapsed in 2018, Was widely accused of being a Ponzi scheme by many analysts and observers, including Ethereum co-founder Vitalik Butirin. last year, a Australian man was charged In relation to the fraud of the company. Many will be familiar with the project due to the now-legendary presentation of investor Carlos Matos:

Many crypto lawyers have resorted to Twitter to speculate on the long-term impact of the case. Gabriel Shapiro noted that even though the SEC is targeting a known fraud in Bitconnect, it could become a “blueprint” for action against other DAOs.