SEC filed a lawsuit against BitConnect promoters
The US Securities and Exchange Commission (SEC) has filed a lawsuit against several US citizens over “promoting the cryptocurrency pyramid BitConnect.”
The regulator’s press service said Trevon Brown, Craig Grant, Ryan Maasen and Michael Noble were promoting a global offering of securities of unregistered digital assets, which raised more than $ 2 billion from retail investors.
According to the SEC, they urged people to invest in BitConnect through YouTube and other social media channels. The commission also noted that for such a promotion of the platform, these people received awards from BitConnect.
A certain Joshua Jeppesen is named as a defendant in the lawsuit. He was accused of mediation between the management of BitConnect and “advertisers” and promoting BitConnect at various events.
In case of full satisfaction of the claim by the court, an injunction will be imposed on the accounts of these persons, and the funds will be returned to the depositors. In addition, these people will have to pay administrative fines imposed on them for “participating in a violation of the securities law”.
“These defendants unlawfully sold unregistered digital asset securities by actively promoting the BitConnect lending program to retail investors,” said Lara Shalov Mehraban, Associate Regional Director of SEC’s New York Regional Office. “We will seek to hold accountable those who illegally profit by capitalizing on the public’s interest in digital assets.”