July 25, 2021

Newspay

Bitcoin & Ethereum Blockchain News

SEC Charges Promoters of $2 Billion Cryptocurrency Scam with Violating Securities Laws

Five promoters of the now-shuttered cryptocurrency Ponzi scheme BitConnect have been charged with violating federal securities laws by the U.S. Securities and Exchange Commission.

Source: u.today

Its complaint says that the promoters relied on YouTube videos for recruiting more investors to the scheme. They would receive a commission based on how successful their recruitment is.

The agency’s assistant regional director claims that those who illegally capitalize on public interest in cryptocurrencies will be held accountable:

We allege that these defendants unlawfully sold unregistered digital asset securities by actively promoting the BitConnect lending program to retail investors. We will seek to hold accountable those who illegally profit by capitalizing on the public’s interest in digital assets.

The $2 billion scam imploded in January 2018, shutting down its lending and trading services.