• 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

SUI Group Increases Loan to Bluefin, Strengthening DeFi Ties

chest

SUI Group Holdings Limited has expanded its lending agreement with Bluefin, increasing the total loan to 6 million SUI to support Bluewater Labs' acquisition of Suilend.

user avatarLuis Flores

Sui Seal MPC Introduces Hidden Bids for Enhanced AI Trading Security

chest

Mysten Labs has introduced a feature in the Sui Seal MPC system that enables hidden bids for AI trading, enhancing security and reducing risks of frontrunning.

user avatarMaria Gutierrez

Mysten Labs Introduces Sui Seal MPC for Secure AI Transactions

chest

Mysten Labs has launched Sui Seal MPC on the Sui mainnet, enabling autonomous AI agents to execute onchain transactions securely without holding private keys.

user avatarArif Mukhtar

Chainlink Collaborates with Project Pangea to Revolutionize Cross-Border FX Settlements

chest

Chainlink partners with Project Pangea to enhance cross-border FX settlements, aiming to reduce settlement times from T2 to T0 using stablecoins by mid-2027.

user avatarDavid Robinson

SecondFi Suspends Services Due to Critical Wallet Flaw

chest

SecondFi has suspended its services due to a critical vulnerability in its wallet generation software that led to the theft of ADA.

user avatarAndrew Smith

Morgan Stanley's Proposed Solana Trust Filing Sparks Market Interest

chest

Morgan Stanley has amended its S1A filing for a proposed spot Solana Trust, focusing on fees and staking plans.

user avatarJacob Williams

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.