US SEC charges five people involved in BitConnect loan program
The United States Securities and Exchange Commission said on Friday it had indicted five people for promoting a global offering of unregistered digital asset securities that raised more than $ 2 billion from retail investors .
BitConnect allegedly organized a global network of promoters through referral commissions and used the network to sell the securities without registering them as required by federal securities laws, the SEC said.
The agency alleged that Trevon Brown, Craig Grant, Ryan Maasen and Michael Noble were among the promoters advertising to potential investors via YouTube videos.
The attorney for the persons could not be determined immediately.
The agency also tasked Joshua Jeppesen, who represented the company at conferences and acted as the liaison between BitConnect and the developers. Jeppesen’s lawyer did not immediately respond to the call for comment.
BitConnect told investors it would use their funds to trade and profit from Bitcoin’s volatility and promised to pay investors the resulting profits, which BitConnect promised could reach around 40% per month, a declared the SEC in its charges.
The SEC has taken the position that initial coin offerings are securities offerings and therefore are subject to the agency’s offer rules, which require companies to file registration and disclosure documents.
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