The US Securities and Exchange Commission has charged five people with illegally selling securities in connection with the $ 2 billion Bitconnect Panzi project that collapsed in 2018.
to the the report The US Securities and Exchange Commission (SEC) has filed charges against the five in the New York District Court for their involvement in the BitConnect digital currency platform.
The BitConnect project collapsed in 2018 after regulators in Texas and North Carolina issued a shutdown warning for its lending and exchange platform.
According to the SEC complaint, BitConnect will offer and sell valuable securities from around January 2017 to January 2018, using a network of advertisers, without registering itself as a broker-trader and the offered product with the SEC. Has made more than $ 2 billion.
Lara Shalov Mehraban, Regional Assistant Director of the SEC Office in New York, said:
We allege that these defendants engaged in the illegal sale of unregistered digital securities by actively promoting the BitContin lending program for micro-investors. We seek to hold accountable those who illegally make a profit by using the public interest in digital assets.
The US Securities and Exchange Commission has charged Trevon Brown, known as Theron James, Craig Grant, Ryan Maasen, and Michael Noble, known as Michael Crypto, with violating federal securities laws. Accused.
The government also accused Joshua Jeppesen of collaborating with and assisting in the supply and sale of BitConnect securities.
The SEC said in a press release that the advertisers were promoting the profit of investing in the BitContin lending program for potential investors, and that one of their methods was to use recommendation-style videos and publish them on YouTube.
According to the complaint, the advertisers received a commission based on their success in raising capital. In its complaint, the SEC has called for a restraining order, repayment of capital plus interest, and civil penalties for the defendants.
Following the public outcry, Brown wrote on Twitter:
Again, I became a man!
Although no criminal charges have been filed so far, the FBI has been investigating BitConnect for the past three years. Brown said in March 2018 that he had spoken to AFBI agents, and in 2019 the federal investigator issued a statement urging investors to file a complaint.
A criminal representative at the Justice Department’s Southern New York office said no criminal charges were expected to be filed today.
Advertisers of the project have also been arrested in other countries; For example, Indian police arrested Divyesh Darij in 2018, and Australian authorities filed charges against John Bigatton last year.