SEC accuses global crypto lending platform with $ 2,000,000,000 fraud
The United States Securities and Exchange Commission files a complaint against the crypto lending platform BitConnect and two of its top executives.
The SEC alleges BitConnect defrauded retail investors over $ 2 billion by selling unregistered investments in a “loan scheme,” according to a press release.
BitConnect claims to have used a “software volatility trading robot” to generate exorbitant returns. However, the SEC says the lending platform instead siphoned investors’ money into portfolios controlled by the company and its founder, Satish Kumbhani.
The regulator is also laying charges against Kumbhani and Glenn Arcaro, who worked as the company’s “best promoter” in the United States.
Lara Shalov Mehraban, associate regional director of the SEC’s New York regional office, says:
“We claim that these defendants have stolen billions of dollars from retail investors around the world by exploiting their interest in digital assets. We will aggressively pursue and hold accountable those who make mistakes in the digital asset space. “
Kumbhani pleaded guilty to criminal charges linked to parallel action by the Department of Justice (DOJ).
In May, the SEC filed complaints against Trevon James, Craig Grant, Ryan Maasen and Michael Noble, who were also the promoters of the BitConnect loan program, and Joshua Jeppesen, who represented the company at promotional events.
The SEC says it has made deals with two of them.
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Featured Image: Shutterstock / Tithi Luadthong