The Securities and Exchange Commission has filed a lawsuit against Chicago Crypto Capital (also known as CCC), its owner Brian Amoah, and two sales managers, Darcas Oliver Young and Elbert “Al” Elliott, for allegedly defrauding investors during their unregistered offering of crypto asset securities. The SEC claims that the defendants committed the fraud while offering crypto asset securities.
Between August 2018 and September 2019, the business is said to have operated as an unlicensed broker-dealer and sold BXY tokens with a total value of $1.5 million to around one hundred investors. It was stated in the lawsuit that they had misled the investors, many of whom were newcomers to the market. They lied to their investors about how the token would be managed and caused them to lose money.
The SEC claims that the accused lied to investors about the custody and delivery of BXY, the markup imposed by CCC, CCC’s liquidation of an investor’s BXY, the accused’s personal interests in BXY, and the problems that arose with the company that issued BXY, Beaxy Digital Ltd.
SEC on cryptocurrency market
The Securities and Exchange Commission (SEC) mentioned that one of the sales managers, Young, had already reached a settlement and admitted to consenting to “the payment of disgorgement and a civil penalty, an associational bar, and injunctive relief.” Young was identified as one of the defendants in the case.
Since a long time ago, the commission has been working to mold the legal narrative around digital assets. Gary Gensler, a commissioner at the SEC, provided an explanation of his perspective on cryptocurrencies last week.
In the meanwhile, Gensler proposed that Bitcoin needs to be dealt with as a commodity, which was an opinion that he had before voiced, due to the fact that it is trading similarly to a precious metal. He went on to describe it as “a speculative, scarce—yet digital—store of wealth.”
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