Five BitConnect Promoters Sued for Marketing and Selling Unregistered Securities

2021-5-30 15:51

The United States Securities and Exchange Commission (SEC) has taken legal action against five individuals promoting the defunct cryptocurrency exchange BitConnect. 

Reports indicate that the federal regulator has sued on the allegations that the defendants helped market and sell securities without registering them with the SEC. Their promotional activities raised more than $2 billion from retail investors.

More specifically, the SEC alleges that the promoters advertised BitConnect’s “lending program” between Jan. 2017 and Jan. 2018 by posting a series of YouTube testimonials. On occasion, they posted the testimonial videos multiple times a day. The promoters were subsequently paid commission for whatever investor cash they could attract. Reports state that one of the accused earned over $2.6 million.

The SEC shared a press release on their Twitter account on May 28. The release listed their allegations in great detail, alongside the names of the accused.

Lara Shalov Mehraban, Associate Regional Director of SEC’s New York Regional Office, was quoted to say:

“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 digital assets.”

The SEC has charged four of the individuals with violating the registration provisions of the federal securities laws. Meanwhile, the Commission’s complaint charged the fifth man with aiding and abetting BitConnect’s unregistered offer and sale of securities.

BitConnect stopped operating as an exchange in 2018 amid fraud allegations.

The SEC’s other crypto cases

The Commission also remains locked in an ongoing legal tug-of-war with Ripple Labs. They have alleged that the company CEO Brad Garlinghouse and co-founder Christian Larsen conducted an illegal securities offering.

On May 21, reports stated that the SEC had won the right to access to further discovery information from Ripple’s overseas regulators. This was the result of an issue that began back in April, when Ripple submitted a letter to Judge Sarah Netburn, requesting she stop the SEC from trying to acquire this information. The letter asserted the SEC was contacting their foreign regulators as an intimidation tactic.

However, Judge Netburn ultimately ruled in the SEC’s favor. She stated there was no evidence to suggest “that the SEC issued its Requests in bad faith.”

More recent developments in SEC vs. Ripple concern the defendants’ request to seal exhibits. On May 28, former federal prosecutor James K. Filan tweeted that the SEC had filed an opposition to that request. Mr Filan, who has commentated on the suit regularly on Twitter, said the SEC noted the great deal of public interest in the case. He also referred to the numbers of attendees at telephonic discovery conferences on April 6 and April 30.

Mr Filan followed up with another tweet shortly afterwards, regarding Ripple’s opposition to the SEC’s motion for another discovery conference.

“SEC also just filed a response to Ripple’s Opposition to the SEC’s motion for a discovery conference,” the tweet read. “Like the SEC’s original motion, the response was filed under seal, so we won’t know what this is about until the sealing issue is decided.”

The post Five BitConnect Promoters Sued for Marketing and Selling Unregistered Securities appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

BitConnect (BCC) на Currencies.ru

$ 0.6799 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0.6799 - H: $0.6799
Капитализация $6.809m Rank 99999
Доступно / Всего 10.015m BCC / 28m BCC

securities five bitconnect exchange unregistered promoters marketing

securities five → Результатов: 69


Фото:

Currency.com: A Unique Trading Platform Offering Tokenized Securities

That way it is not just your run-of-the-mill cryptocurrency exchange. The term “tokenized securities exchange” is perhaps a much better fit to describe the platform. In this review today, we’re going to focus mainly on five aspects that determine the overall quality of services offered by an exchange — ease of use, security, financial instruments … Continued The post Currency.

2021-4-6 20:06


SEC Extends Olive Branch to Broker-Dealers Handling Digital Assets

The move follows official charges recently brought on Ripple executives. The SEC, according to the statement, seeks to “encourage innovation” regarding digital asset securities. The Commission will reportedly grant a grace period of five years to broker-dealers who have handled digital asset securities: “…a broker-dealer operating under the circumstances set forth in the statement will … Continued The post SEC Extends Olive Branch to Broker-Dealers Handling Digital Assets appeared first on BeInCrypto.

2020-12-24 23:50


Japanese financial services giant Monex Group forms Security Token Offering Association

Financial services giant Monex Group announced the establishment of a Japanese Security Token Offering Association alongside five other major securities companies in the country. Major Japanese brokerage firms come together to promote STOs Japan could soon see more useful regulations surrounding security tokens as some of the biggest brokerage companies in the country have joined […] The post Japanese financial services giant Monex Group forms Security Token Offering Association appeared first on CryptoSlate.

2019-10-2 00:22


Фото:

Cryptocurrency fraudster faces 5 years in prison for selling fake ICOs

A Brooklyn-based businessman turned cryptocurrency huckster faces up to five years in prison for orchestrating two monstrously phony initial coin offerings (ICOs) last year. Maksim Zaslavskiy, a former institutional developer and “businessman,” plead guilty to two counts of conspiracy to commit securities fraud before a New York district court yesterday, reports FinanceFeeds.

2018-11-16 14:18


US SEC Reminds Crypto Investors 5 Important Facets of Initial Coin Offerings (ICOs)

On Saturday, November 10, 2018, the U.S Securities and Exchange Commission (SEC), took to its Twitter account to express the following: Five things you need to know about ICOs: https://t.co/N1cfvEjmM6 — SEC_News (@SEC_News) November 10, 2018 As seen above, crypto investors are being advised on what Initial Coin Offerings (ICOs) are and things to keep […]

2018-11-11 21:40


Фото:

The Australian Securities And Investments Commission Clamp Down On Rogue ICOs

The Australian Securities and Investments Commission (ASIC) have announced that since April 2018, they have stopped five Initial Coin Offerings (ICOs) from taking place, suggesting that ASIC are serious in preventing rogue ICOs from taking place within Australia, as a result of the threat they pose to many innocent cryptocurrency investors.

2018-9-25 12:30