SEC accuses global crypto lending platform with $ 2,000,000,000 fraud

0

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.

Don’t Miss a Beat – Subscribe to receive crypto email alerts straight to your inbox

follow us on Twitter, Facebook and Telegram

Surf the daily Hodl Mix

Check out the latest news headlines

Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high risk investments in Bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may suffer is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in Affiliate Marketing.

Featured Image: Shutterstock / Tithi Luadthong

Leave A Reply

Your email address will not be published.