U.S. SEC Charges Four Individuals Behind $1.75 Billion Crypto Ponzi Scheme

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Last Updated on November 6, 2022 by Bitfinsider

The U.S. Securities and Exchange Commission (SEC) is filing charges against four alleged participants in a $295 million cryptocurrency Ponzi scam.

The SEC contends that between 2016 and 2018, Trade Coin Club (TCC), a purported crypto trading membership club, raised more than 82,000 Bitcoin (BTC) from more than 100,000 investors worldwide.

This haul, which was valued at $295 million at the time, is now worth more over $1.75 billion.

Four individuals, including TCC creator Douver Torres Braga and three US promoters Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault, were charged by the SEC for their involvement in the alleged scam.

Braga and Paradise allegedly enticed investors with false promises that a crypto asset trading bot would execute “millions of microtransactions” per second and yield daily returns of at least 0.35%.

According to an SEC news notice, investor monies benefitted Braga and a network of TCC promoters.

According to David Hirsch, chief of the Crypto Assets and Cyber Unit of the SEC Enforcement Division,

“We say that Braga used Trade Coin Club to steal hundreds of millions of dollars from global investors and enrich himself by abusing their desire to participate in digital assets. To safeguard the integrity and safety of our markets, we will continue to employ blockchain tracking and analytical capabilities to aid in the investigation of those who commit securities fraud.”

The SEC seeks injunctive relief, disgorgement, and civil penalties in its case. According to the press statement, Tetreault, one of TCC’s promoters, has already agreed to settle the SEC’s charges without admitting or disputing the claims.

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