• The US Securities and Exchange Commission (SEC) charged Neil Chandran and seven other individuals and entities for orchestrating a fraudulent cryptocurrency investment scheme called CoinDeal.
• The suspects allegedly defrauded investors with around $45 million over the years and used the money to buy real estate, cars, and a boat.
• The SEC is now seeking to halt the crime and return the stolen funds to the investors.
The US Securities and Exchange Commission (SEC) has charged Neil Chandran, Michael Glaspie, Garry Davidson, Linda Knott, Amy Mossel, AEO Publishing Inc, Banner Co-Op, Inc, and BannersGo, LLC with orchestrating a fraudulent cryptocurrency investment scheme called CoinDeal. According to the SEC, the defendants are accused of stealing approximately $45 million from investors over the years and using the money to purchase real estate, cars, and a boat.
The SEC alleges that the defendants deceived investors by making false and misleading statements about CoinDeal, which was a fraudulent entity designed to solicit and accept investments in digital assets. Specifically, the defendants claimed that CoinDeal had an experienced team of professional cryptocurrency traders who could generate substantial returns for investors. The defendants also falsely claimed that CoinDeal had the necessary regulatory approvals to operate in multiple jurisdictions and that all investments were safe and secure.
Furthermore, the SEC alleges that the defendants used a variety of tactics to entice investors, including offering bribes and kickbacks and creating fake websites, blogs, and social media accounts. The defendants also allegedly lied about the true nature of their transactions and failed to disclose their own financial interests in the scheme.
The SEC is now seeking to halt the crime and return the stolen funds to the investors. The agency is also seeking to impose civil penalties and other remedies on the defendants. In addition, the SEC is seeking to bar the defendants from engaging in any future securities-related activities.
This case underscores the need for investors to be vigilant when investing in the cryptocurrency markets. The SEC strongly encourages investors to do their research and be aware of potential frauds and scams. Investors should also be aware of any unusual or suspicious activities and contact the SEC if they have any concerns.