SEC Charges 4 People in $295M Global Crypto Ponzi Scheme That Fooled Over 100,000 Investors

The U.S. Securities and Exchange Commission (SEC) has indicted four people for their role in a global cryptocurrency Ponzi scheme that duped more than 100,000 investors worldwide. The program has raised over $295 million in bitcoins.

SEC Says “Trade Coin Club” Is a Crypto Ponzi Scheme

On Friday, the United States Securities and Exchange Commission (SEC) announced charges against four people for their role in a fraudulent crypto Ponzi scheme.

Douver Torres Braga, Joff Paradise, Keleionalani Akana Taylor and Jonathan Tetreault were allegedly involved in the Trade Coin Club, “a fraudulent crypto Ponzi scheme that raised over 82,000 bitcoins, valued at $295 million at the time, from of more than 100,000 investors worldwide,” the SEC described.

Braga created and controlled the Trade Coin Club, the regulator explained, adding that the multi-level marketing program promised investors a minimum return of 0.35% per day “from the trading activities of an alleged coin trading bot. ‘cryptographic assets’. Noting that the program ran from 2016 to 2018, the SEC detailed:

Braga allegedly siphoned off investor funds for its own benefit and to pay a network of global Trade Coin Club promoters, including Paradise, Taylor and Tetreault.

The SEC alleged that Braga personally received at least 8,396 bitcoins of the amounts invested, Paradise received 238 bitcoins, Taylor received 735 bitcoins, and Tetreault received 158 bitcoins.

David Hirsch, head of the SEC Enforcement Division’s Crypto Assets and Cyber ​​Unit, commented:

We allege that Braga used Trade Coin Club to rob hundreds of millions of investors around the world and enrich themselves by exploiting their interest in investing in digital assets.

“To ensure our markets are fair and safe, we will continue to use blockchain tracing and analytics tools to help us prosecute individuals who commit securities fraud,” he said.

The SEC alleged that Braga and Paradise violated anti-fraud and securities registration provisions. Paradise further violated the stockbroker registration provisions of the federal securities laws. During this time, Taylor violated securities and broker registration provisions. The complaint seeks an injunction, reimbursement and civil penalties.

The securities regulator also filed a second lawsuit alleging Tétreault violated securities and broker registration provisions. Without admitting or denying the allegations, he agreed to settle the charges.

Keywords in this story

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What do you think of this case? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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