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U.S. SEC Charges Two Brothers in $60M Ponzi Scam Using a Crypto Platform
The complaint alleges that the duo falsely told investors about one of them creating a “bot” that operated on a crypto asset trading platform.
- The SEC charged two brothers with attempting to defraud more than 80 investors in a $60 million Ponzi scheme.
- The brothers allegedly told investors one of them had created a “bot” that operated on a crypto asset trading platform, which could identify arbitrage trading opportunities.
The U.S. Securities and Exchange Commission (SEC) has charged brothers Jonathan and Tanner Adam of attempting to defraud more than 80 investors with a $60 million Ponzi scheme involving a crypto asset trading platform, it announced on Monday.
The SEC also obtained "emergency asset freezes against Jonathan Adam, a resident of Angleton, Texas, and his brother, Tanner Adam, a resident of Miami, Florida, and against their respective entities, GCZ Global LLC and Triten Financial Group LLC."
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Between January 2023 to June 2024, the brothers allegedly lured victims with the promise of up to 13.5 percent monthly returns. The complaint alleges that the duo falsely told investors that Jonathan Adam had created a “bot” that operated on a crypto asset trading platform, which could identify arbitrage trading opportunities.
The SEC also alleges that Tanner Adam used the funds to build a $30 million condominium in Miami, while Jonathan Adam used at least $480,000 of investor funds to purchase recreational vehicles. Jonathan also did not tell investors that he had previously been convicted of three counts of securities fraud.
The SEC is seeking "permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties" against the brothers.
Read More: U.S. SEC Settles with Abra Over Unregistered Sales of Securities
Amitoj Singh
Amitoj Singh is a CoinDesk reporter focusing on regulation and the politics shaping the future of finance. He also presents shows for CoinDesk TV on occasion. He has previously contributed to various news organizations such as CNN, Al Jazeera, Business Insider and SBS Australia. Previously, he was Principal Anchor and News Editor at NDTV (New Delhi Television Ltd.), the go-to news network for Indians globally. Amitoj owns a marginal amount of Bitcoin and Ether below CoinDesk's disclosure threshold of $1,000.
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