SEC charges members of Trade Coin Club for operating 82K BTC crypto Ponzi scheme

The U.S. Securities and Exchange Commission (SEC) buys claims against five members of the Trade Coin Club who defrauded over 100,000 investors of 82,000 BTC in a virtual Ponzi scheme (valued at the time of $295 million) from over 100,000 investors worldwide Did. according to In a Nov. 4 SEC press release.

The Trade Coin Club was a crypto pyramid scheme masquerading as a multi-level marketing program that operated from 2016 to 2018 and promised profits from non-existent cryptocurrency trading bots.

At the time of writing, the value of stolen bitcoins has reached approximately $1.7 billion, maximum Best ponzi scheme ever.

Among those indicted are Douver Torres Braga, who created and managed the Trade Coin Club and made at least $55 million in profits in bitcoin, and the scheme’s promoters Joff Paradise, Keleionalani Akana Taylor, and 1.4 million. and Jonathan Tereault, who received $2.6 million. , and $625,000 each.

Crypto Ponzi scheme

According to the SEC, Trade Coin Club tricked investors into thinking they could make a minimum daily profit of 0.35% from cryptocurrency trading bots by making millions of microtransactions per second. Braga has pocketed investor funds for personal use and payments to promoters of the platform.

The club, as promised by The Trade Coin Club, paid withdrawals from investors’ deposits in lieu of profits made from cryptocurrency trading bot activity.

The SEC is prosecuting club members for violating fraud prevention and securities registration regulations, securities and broker-dealer registration regulations. Meanwhile, the SEC is also seeking financial compensation from its members.

The SEC now claims to use blockchain tracking and analysis tools to launch an investigation and bring those who perpetrate securities fraud to justice.

The agency also warns investors by identifying red flags such as promises of high investment returns, unauthorized or unregistered sellers, depictions of investment accounts skyrocketing in value, and false testimonials. Asked to refrain from investing in assets.

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