SEC Charges 17 People in $300 Million Cryptocurrency Ponzi Scheme-Zhen Huicha

SEC Charges 17 People in $300 Million Cryptocurrency Ponzi Scheme

2024-03-26 16:17:06

abstract：The U.S. Securities and Exchange Commission (SEC) has charged 17 people with participating in a $300 million Ponzi scheme that targeted Latino investors in the United States and two other countries. The scam, which is alleged to have operated out of Houst

The U.S. Securities and Exchange Commission (SEC) has charged 17 people with participating in a $300 million Ponzi scheme that targeted Latino investors in the United States and two other countries.

The scam, which is alleged to have operated out of Houston, Texas, targeted more than 40,000 investors across 10 states and two foreign countries, promising large amounts of money through “risk-free” and “guaranteed” investments in cryptocurrencies and currency pairs. wealth.

The SEC action follows an emergency intervention in September 2022, when the commission halted CryptoFX’s operations and implicated its key figures Mauricio Chavez and Giorgio Benvenuto.

SEC Charges 17 People in $300 Million Cryptocurrency Ponzi Scheme

According to the investigation, the 17 people charged were from Texas, California, Louisiana, Illinois and Florida. They were accused of orchestrating the CryptoFX network and luring investments with potential returns of 15% to 100%. By. However, the funds allegedly allocated for trading were instead used "to pay commissions and bonuses to the 17 individuals themselves and investors, and for their own lives," the SEC said.

The SEC filed multiple charges against the defendants, accusing them of violating rules related to fraud, securities registration, dealer registration and whistleblower protections. The SEC noted that two of the defendants, Luis Serrano and Julio Taffinder, had accepted the final verdict and neither admitted nor denied guilt. They agreed to pay penalties, back taxes and interest totaling more than $68,000.

Article Source：Forex website

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