The US Securities and Exchange Commission (SEC) has charged four individuals in relation to a Ponzi scheme. They allegedly defrauded investors out of nearly $300 million.
The SEC said Friday that Trade Coin Club collected 82,000 in Bitcoin from over 100,000 investors across the world from 2016-2018, worth about $295 million.
The investors were promised “minimum 0.35 daily returns” through a “crypto asset trading bot.” However, according to the SEC, the company is a Ponzi scam. The government agency targeted Douver Torres Braga, Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault for their alleged participation in the “multi-level marketing program.”
David Hirsch, Enforcement Division’s Crypto Assets and Cyber Unit Chief, said in a statement that they allege that Braga used Trade Coin Club to dupe investors around the world of hundreds of millions and exploit their interest in investing in digital assets to enrich himself. He further added that to ensure fairness and safety in our markets, they will continue using blockchain tracing and analytical tools to aid in the pursuit of individuals who carry out securities fraud.
The SEC’s allegations state that at least $55 million in Bitcoin was collected by Braga personally, Paradise $1.4 million, Taylor $2.6 million, and Tetreault roughly $625,000.
Moreover, anti-fraud and securities registration regulations of the federal securities laws, and the rules that require broker-dealers to be registered, have been legally violated. The money obtained has been demanded back from the four defendants. Tetreault settled the SEC claims against him without confirming or denying the allegations.