SEC closed in on settlements with the US Bitconnect promoters of the Ponzi Scheme as we can see more in our latest cryptocurrency news.
The US Securities and Exchange Commission- SEC closed in on the settlements with four US-based individuals accused of promoting the Bitconnect multi-billion dollar crypto Ponzi Scheme. According to Law360 the terms of the settlements are awaiting final approval from Judge John Koeltl who noted that while agreements’ terms are legally sound, minor fixes are much needed to be made to ensure they are accurate.
The agreements include a more than $3 million settlement from Joshua Heppensen of Massachusetts and another one of $576,000 from his fiance Laura Mascola. Next up, a settlement worth $526,000 with Ryan Maasen was made and an unspecified amount from Michael Noble of California. The SEC filed lawsuits against six of the promoters alleging they offered and sold unregistered securities in the US including advertising BitConnect’s lending platform in a testimonial-style video. The two remaining defendants Trevon Brown of South Carolina and Craig Grant of Florida still have to agree to the settlement with the SEC.
The reports noted that in 2017 the company lured investors with promises of “no risk” returns and pledge BTC as collateral against which they can borrow and trade its native BitConnect coin. When the company closed its lending platform in January 2018, after getting a cease and desist order from the state regulators in Texas and North Carolina, investors were unable to redeem their coins and were left holding the bag as BitConnect Coin crashed by more than 90%. BitConnect is among the biggest Ponzi Schemes that have ever inflitrated the crypto sector having duped more than $2.5 billion from investors in one year. The fall out of the scam was a global reach with 52-year Australian promoter John Louis Anthony Bigatton facing six charges with penalties for his role in the scheme.
As previously reported, The US SEC charged BitConnect promoters who allegedly promoted the platform as a crypto investment program that showed signs of a Ponzi scheme. The SEC contends that BitConnect was a global unregistered digital asset equities offering and the agency said that the promoters managed to make up to $2 billion from retail investors by using the five promoters.