The Sec Charges Eight People for The $45 Million CoinDeal Blockchain Scam

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Last Updated on January 5, 2023 by Bitfinsider

The Securities and Exchange Commission has accused eight persons and organizations with selling unregistered securities using the blockchain technology startup CoinDeal.

According to an SEC announcement, the accused are Neil Chandran, Garry Davidson, Michael Glaspie, Amy Mossel, Linda Knott, AEO Publishing Inc, Banner Co-Op, Inc, and BannersGo, LLC.

Despite the fact that no acquisition or cash were ever issued to investors, Chandran, Davidson, Glaspie, Knott, and Mossel purportedly stated that CoinDeal will be sold for trillions of dollars. Chandran is also accused of misusing millions of dollars in investor cash to purchase a yacht, real estate, automobiles, and other personal items.

The SEC filed the lawsuit in the Eastern District of Michigan of the United States District Court.

“We allege the defendants falsely claimed access to valuable blockchain technology and that the imminent sale of the technology would generate investment returns of more than 500,000 times for investors,” said Daniel Gregus, director of the Securities and Exchange Commission’s Chicago Regional Office, in a statement.

Neil Chandran has been arrested in the United States since September 14, 2022, for offences involving wire fraud and two charges of engaging in monetary transactions with illegally generated property.

The SEC claimed that Chandran deceived over 10,000 people via investment fraud schemes involving CoinDeal and other companies.

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