SEC Files $60 Million Crypto Ponzi Scheme Lawsuit Against Georgia Brothers
The post SEC Files $60 Million Crypto Ponzi Scheme Lawsuit Against Georgia Brothers appeared on BitcoinEthereumNews.com.
The U.S. Securities and Exchange Commission (SEC) has brought charges against two brothers for running a $60 million Ponzi scheme. Notably, the complaint was filed on August 26 in the United States District Court for the Northern District of Georgia in Atlanta. SEC Freezes Assets in Scam According to the regulator’s filing, Jonathan Adam and his brother Tanner Adam defrauded over 80 individuals by falsely claiming to run a crypto bot that promised a monthly return of 13.5% to anyone putting money in it. Between January 2023 and June 2024, the two misled investors by claiming their bot could identify arbitrage opportunities across different platforms. They promised that investor funds would be placed in a lending pool to finance flash loans and execute trades, with assets borrowed and returned within a single blockchain transaction. However, according to Justin Jeffries, Associate Director of Enforcement at the SEC’s Atlanta Regional Office, the bot was entirely fictitious. Instead of trading, the siblings allegedly squandered $53.9 million of the $61.5 million raised. They funded extravagant lifestyles, including buying luxury cars and trucks and building a $30 million condominium. The regulator claims that the Adams brothers reassured users of the system that the risk was “virtually non-existent,” barring a global market collapse. In addition, Jonathan allegedly misled his backers by concealing his background, including three previous convictions for securities fraud. To stop the scheme, the SEC secured emergency asset freezes for the brothers’ companies, GCZ Global LLC and Triten Financial Group LLC. Consequently, the agency has charged both Jonathan and Tanner with violating federal securities laws’ anti-fraud provisions. They are pursuing permanent injunctions against their companies, the return of all investor funds, and civil penalties. Notably, Jonathan has invoked the Fifth Amendment in response to a subpoena for testimony issued by the financial watchdog during…
Filed under: News - @ August 31, 2024 4:17 am