2 years ago
131 The U.S. Securities and Exchange Commission (SEC) stated that it has settled charges against three BitConnect promoters.
According to the regulator, the defenders accepted the judgments but did not deny or accept the charges.
The SEC, through the New York Southern District Court, passed the judgment against Joshua Jeppesen and a final judgment against Michael Noble (also known as Michael Crypto) for their alleged role in the promotion of the Bitconnect lending program. A third person, Laura Mascola, as a relief defendant, was also involved.
The first charges levied against Noble and other conspirators came in May. While Noble was accused of setting up the scheme, Jeppesen was involved in its promotional activities. On the other hand, Mascola received some proceeds from Jeppesen’s activities
The defendants went against the law
According to the charges labeled against the defendants by the SEC, Noble promoted and sold securities via its “lending program” without any proper registration of the securities. The allegation also noted that Noble did not register with the commission as a broker-dealer. As a result, the investment group went against the law by operating without approval.
The relief defendants and the defendants have been ordered to remit 190 Bitcoin and more than $3.5 million in prejudgment and disgorgement interest.
The Ponzi scheme stole $2.6 billion
BitConnect was a practical example of a Ponzi scheme that was set up to deceive investors. The platform promised massive returns for investors. But it turned out to be a Ponzi scheme that ripped off $2.6 billion from its victims.
The Scheme took advantage of the Bull Run in the cryptocurrency market in 2017. It entered the crypto space in 2017 and exited the scene in early 2018. While most of the culprits are from the U.S. other regulators from other regions have started indicting people involved in the massive Ponzi scheme.
