The US SEC accuses 8 people and companies that are connected with a $ 45 million crypto fraud

The US SEC accuses 8 people and companies that are connected with a $ 45 million crypto fraud

The US Securities and Exchange Commission (SEC) has accused Neil Chandran and seven other people and organizations that the fraudulent cryptocurrency investment program called Coindeal orchestrated.

The suspects are said to have cheated by around $ 45 million over the years and bought real estate, cars and a boat with money.

Insert the crime

The S accuses Neil Chandran, Garry Davidson, Linda Knott, Amy Mossel, Aeo Publishing Inc, Banner Co-OP, INC and Bannersgo, LLC due to embezzlement of $ 45 million of consumers by their fraudulent company Coindeal.

promised the individuals to sell the blockchain-based project to a group of prominent buyers, which would guarantee investors large returns. They also deceived them about the evaluation of Coindeal and the companies involved in the possible takeover business.

The defendants carried out their program between January 2019 and 2022. The sale of Coindeal never took place, and investors received no distributions for their participation in the project. The SEC continued to claim that Chandran, Glaspie, Davidson, Knott and Mossel used $ 45 million for the purchase of cars, land and a boat. Daniel Gregus - Director of the SEC regional office in Chicago - commented:

"We claim that the defendants have incorrectly claimed to have access to valuable blockchain technology, and that the upcoming sale of the technology would bring investors from more than 500,000 times.

As in our lawsuit, this was actually all a sophisticated system in which the accused enriched themselves while cheating tens of thousands of small investors. ”

The US Ministry of Justice had previously arrested Chandran for crimes in connection with transfer fraud and participation in illegal money transactions, while it was part of Coindeal.

The Commission aims to impose punishments and permanent orders against all defendants. At the same time, it insists that Chandran should be the subject of a behavioral -based decision.

The former hunting of the Sec

The American regulatory authority initiated another investigation against two consulting companies and its owner-Gabriel Edelman-because they had operated a ponzi-like cryptocurrency system.

The organizations allegedly worked between February 2017 and May 2021 and collected almost $ 4.4 million from investors.

Edelman promised to invest the capital in reduced cryptocurrencies. However, he headed "only a small part of the investor money in digital assets" and used the rest to buy personal items and send money to family members. The SEC explained in detail how Edelman's snowball system worked:

"For example, an investor initially invested $ 50,000. Edelman returned $ 75,000 within a few months, and the investor then invested another $ 600,000. Edelman returned $ 720,000 a few months later. Investor would receive a return of 15 %.

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