SEC Sues Cryptocurrency Promoters Over $2 billion Scheme

Written by:
Associated Press
Published on:

(AP) Federal regulators have accused a group of people of promoting a securities offering tied to digital currency that raised over $2 billion from retail investors without being properly registered.


The Securities and Exchange Commission filed the civil lawsuit Friday in federal court in Manhattan. It alleges that an outfit called BitConnect used a network of promoters to sell the securities without registering the offering with the SEC, or registering themselves, as brokers as required by law.

The promoters touted the benefits of investing in BitConnect’s program, creating testimonial-style videos and publishing them on YouTube, sometimes multiple times a day, according to the regulators. The promoters allegedly received commissions based on their success in bringing in money from investors.

The suit is the latest in a series of enforcement actions involving digital assets that the SEC has taken starting in 2013. The actions against cryptocurrency issuers, brokers and exchanges have come as digital currencies like Bitcoin have exploded in popularity in recent years amid extreme price volatility. The SEC has collected an estimated $1.77 billion in penalties in settlements of cases, according to financial experts.

Digital currencies aren’t tied to a bank or government and allow users to spend money anonymously. The Biden administration is looking at tightening regulation of Bitcoin and other cryptocurrencies, with an eye to preventing the growing incidence of ransomware attacks that demand payment in the currencies.

Business/Financial News

Attendees Hospitalized Following Miami Bitcoin Conference

More of those who attended last weekend's Miami Bitcoin Conference have come forward to tell their stories of falling ill, some confirming they tested positive for Covid-19.  The organizers point to the fact that vaccinations have been widely available in the United States.  According to CoinDesk, most respondents to their inquiries indicated that they had gone to Miami fully vaccinated

What Are The Types of Sportsbook Solutions Available

What Are The Types of Sportsbook Solutions Available

Bookies, there is a comprehensive sportsbook solution, and we want to tell you why you need it, and where you can find it. The pay per head industry has turned the gambling industry on its ear, and now you can get in on the ground floor with a three-in-one website that includes a fantastic sportsbook, a world-class racebook, and a Las Vegas-style casino.

Blockchain for Business: CoinGeek’s Zurich Conference is Live & Free With Over 100 Speakers

CoinGeek’s 7th Conference (June 8-10) will feature real use cases in BSV blockchain technology ranging from healthcare to eSports, iGaming to NFTs, and will focus on the environmental impact of digital assets and the future of money itself.

The Crypto Beat - June 7, 2021

The Crypto Beat - June 7, 2021

U.S. seizes $2.3 mln in bitcoin paid to Colonial Pipeline hackers, CryptoFights battles its way to 18.4% share of BSV network actions and El Salvador has become the first country to onboard to a non-fiat currency.

California Man Gets 2 years in Prison for Laundering Bitcoin

California Man Gets 2 years in Prison for Laundering Bitcoin

A Southern California man who pleaded guilty to illegally operating kiosks where customers could buy Bitcoin with cash, or sell Bitcoin in exchange for cash has been sentenced to two years in federal prison.