SEC Charges 4 People in $295M Global Crypto Ponzi Scheme That Duped Over 100,000 Investors – Regulation Bitcoin News

Four people were charged by the U.S. Securities and Exchange Commission for their involvement in a Ponzi scheme using cryptocurrency that deceived more than 100,000 investors around the world. It raised $295million in bitcoin.

SEC Says ‘Trade Coin Club’ Is a Crypto Ponzi Scheme

Four people were charged by the U.S. Securities and Exchange Commission for participating in fraudulent crypto Ponzi schemes.

Douver Torres Braga, Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault were allegedly involved in Trade Coin Club, “a fraudulent crypto Ponzi scheme that raised more than 82,000 bitcoin, valued at $295 million at the time, from more than 100,000 investors worldwide,” the SEC described.

Braga created and controlled Trade Coin Club, the regulator explained, adding that the multi-level marketing program promised investors a minimum return of 0.35% daily “from the trading activities of a purported crypto asset trading bot.” Noting that the scheme operated from 2016 through 2018, the SEC detailed:

Braga was accused of taking investor funds and using them to fund a worldwide network trade coin club promoters like Taylor, Paradise, and Tetreault.

Braga was alleged to have received 8,396 Bitcoins out of all the money invested. Paradise got 238 Bitcoins. Taylor got 735 and Tetreault 158.

David Hirsch, chief of the SEC Enforcement Division’s Crypto Assets and Cyber Unit, commented:

Braga, we allege, used Trade Coin Club in order to steal millions of dollars from global investors and then profit by exploiting the interest they have in investing digital assets.

“To ensure our markets are fair and safe, we will continue to use blockchain tracing and analytical tools to aid us in the pursuit of individuals who perpetrate securities fraud,” he emphasized.

Paradise and Braga were accused of violating the securities registration and antifraud provisions. Paradise also flouted federal securities law broker-dealer registration requirements. Taylor also violated both the broker-dealer and securities registration provisions. This complaint is seeking injunctive relief and disgorgement as well as civil penalties.

A second complaint was also filed by the securities regulator alleging Tetreault had violated securities and broker-dealer registration requirements. He agreed to pay the fines, but he did not admit or deny the allegations.

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Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.