The SEC has filed a complaint against five people who are accused of advertising BitConnect’s “loan scheme”

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The Securities and Exchange Commission has filed a civil case against five people who were allegedly involved in advertising BitConnect’s “loan scheme.”

A civil action has been filed by the Securities and Exchange Commission (SEC) against five people who were allegedly involved in advertising BitConnect’s “loan scheme.” Following regulatory warnings and claims of fraud, BitConnect shut down its primary lending platform activities in 2018. According to a news statement posted on the SEC’s website today, the people were involved in advertising and soliciting nearly $2 billion from retail investors in an unregistered digital asset securities offering.

Individuals allegedly sold stocks without being registered as brokers, according to the SEC.

According to the SEC complaint, four of the five defendants were part of a network of promoters who issued and sold securities as part of the platform’s loan program without registering broker-dealers or registering the securities with the SEC. The press release includes a flurry of “testimonial” type movies published to YouTube to illustrate the program’s advantages. According to the suit, promoters were paid commissions based on the amount of money they could raise. The Securities and Exchange Commission (SEC) has recently strengthened its restrictions on cryptocurrency enterprises.

Individuals marketed the BitConnect loan service to retail investors in an illegal manner.

The fifth person included in the lawsuit is accused of “aiding and abetting” the unregistered offering and sales, acting as a contact between BitConnect and the promoters, and representing the firm at events and conferences. New York SEC Associate Regional Director Lara Shalov Mehraban remarked in a press release, “We allege that these defendants unlawfully sold unregistered digital asset securities by actively promoting the BitConnect lending program to retail investors. We will seek to hold accountable those who illegally profit by capitalizing on the public’s interest in cryptocurrencies.” As the financial regulator continues to pursue litigation, the SEC adopts a cautious approach to cryptocurrencies. Ripple has previously been sued by the Securities and Exchange Commission (SEC) for allegedly marketing unlawful security, XRP.

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