Monday, December 5, 2022
HomeLaw & PoliticsCoin Club Founders Under List Of SEC For $295 Million Ponzi Scheme

Coin Club Founders Under List Of SEC For $295 Million Ponzi Scheme

The United States Securities and Exchange Commission (SEC) has initiated legal action against the founder of Trade Coin Club as well as three of its promoters, alleging that the defendants misled investors into investing their money in a phishing cryptocurrency trading bot.

In an announcement made on Friday, the regulatory body stated that individuals involved in the cryptocurrency project, including Douver Torres Braga, Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault, had raised 82,000 BTC (equivalent to approximately $300 million) from over 100,000 investors all over the world between the years 2016 and 2018.

Braga, the creator of Trade Coin Club, allegedly misled investors by promising them that they could make “minimum profits of 0.35% daily” using a “crypto asset trading bot.” However, he used the customers’ money to recompense himself, Paradise, Taylor, and Tetreault instead.

According to David Hirsch, Chief of the Enforcement Division’s Crypto Assets and Cyber Unit, “We allege that Braga used Trade Coin Club to steal hundreds of millions of dollars from investors around the world and enrich himself by exploiting their interest in investing in digital assets.” This allegation was made by the Enforcement Division.

“To guarantee that our markets are fair and secure, we will continue to deploy blockchain tracing and analytical tools to assist us in the investigation of those who commit securities fraud,” Hirsch continued. “This will help us ensure that our markets are fair and secure.”

In addition, the SEC said that Braga was given at least $55 million worth of user cash (8,396 Bitcoin), while Paradise was given $1.4 million, Taylor was given $2.6 million, and Tetreault was given around $625,000.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.


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