• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Adam Brothers Ran $61 Million Crypto Ponzi Scheme, Says SEC

user avatar

by Giorgi Kostiuk

2 years ago

  1. Promises of 13.5% Monthly Returns
  2. Use of Investor Funds for Luxury Lifestyle
  3. Hiding Past Frauds


    4. The SEC has filed a complaint against brothers Jonathan and Tanner Adam, accusing them of running a crypto Ponzi scheme worth over $61 million through their firms GCZ Global LLC and Triten Financial Group LLC.

    Promises of 13.5% Monthly Returns

    According to the SEC lawsuit, the brothers convinced and lured victims by promising a monthly investment return of up to 13.5%. They lied to investors about creating a crypto bot that supposedly operated on a crypto trading platform, identifying arbitrage trading opportunities. The brothers claimed investor funds would be used in a lending pool to finance flash loans through smart contracts to execute these arbitrage trades. However, the SEC alleges that no such lending pool exists.

    Use of Investor Funds for Luxury Lifestyle

    The lawsuit states that the brothers used investor funds to pay returns to existing investors and to finance their own luxurious lifestyle. Tanner used the funds to pay for building a $30 million condominium in Miami. Jonathan was accused of using investor funds to buy cars, recreational vehicles, and trucks. Additionally, the brothers were alleged to have used $1.8 million of investor funds to build houses in Texas for their parents and Jonathan's in-laws.

    Hiding Past Frauds

    The SEC complaint highlights that Jonathan hid his past with three counts of securities fraud conviction to gain investors' trust. The SEC alleges that the Adam brothers promised their investors high returns on a non-existent crypto investment, then used investor funds to make Ponzi-like payments and purchase luxury goods, recreational vehicles, and million-dollar homes.

    As we allege, the Adam brothers promised their investors high returns on a crypto investment that did not exist, and then used investor funds to make Ponzi-like payments and to purchase designer goods, recreational vehicles, and million-dollar homes.SEC

    The SEC stated that they will use all available tools to stop those exploiting new technologies to scam investors.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Shiba Inu Token Experiences Remarkable 22% Surge

chest

Shiba Inu has experienced a significant price increase of nearly 22% in just one week, marking a notable change after a long period of stagnation.

user avatarFilippo Romano

Congress Proposes AI Kill Switch Legislation

chest

Congress members propose the AI Kill Switch Act to give the federal government authority to shut down AI models.

user avatarEmily Carter

Frax Governance Discusses Proposal for Early Redemptions from Locked Ethereum Pools

chest

Frax governance is discussing a proposal for early redemptions from locked Ethereum pools with a 4% penalty fee directed to the Frax treasury.

user avatarTomas Novak

Frax Governance Proposes Morpho Lending Market for bdUSD and frxUSD

chest

Frax governance is discussing a proposal to create a Morpho lending market for bdUSD and frxUSD to enhance stablecoin liquidity and borrowing demand.

user avatarKaterina Papadopoulou

EigenLayers Forum Engages in ELIP018 Proposal Discussion

chest

The EigenLayers forum is currently engaged in a debate over the draft proposal ELIP018, which introduces a framework known as RETIRE, aimed at providing a terminal exit route for restakers.

user avatarMaya Lundqvist

Uniswap Governance Explores Private Execution Path for Swaps

chest

Uniswap governance is discussing a proposal for an optional private execution path for swaps to enhance user privacy and reduce transaction information exposure.

user avatarLeo van der Veen

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.