- The U.S. SEC files charges to five promoters for their alleged involvement in BitConnect 2018 scheme.
- The promoters received commissions based on their success in soliciting funds.
On Friday, the U.S. Securities and Exchange Commission sues five individuals for their alleged involvement in the Bitconnect Ponzi. It should be noted, BitConnect is the global crypto lending and exchange platform that collapsed in 2018.
Based on SEC’s complaint, BitConnect used a network of promoters to offer and sell over $2 billion in securities without registering it on SEC. More so, this complaint was filed in the United States District Court for the Southern District of New York, from about January 2017 to January 2018. Apart from this, the complaint states that BitConnect did not register as broker-dealers as required by the federal securities law.
Lara Shalov Mehraban, New York SEC’s Associate Regional Director stated,
This article was first published on coinquora.com
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