• 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

XRP's Role in DeFi Sparks Controversy

chest

A heated debate has emerged regarding XRP's position in the decentralized finance sector, highlighting the importance of reliability in protocol design.

user avatarJacob Williams

XRP's DeFi Ecosystem Surges Towards 160 Million Tokens

chest

The FXRP supply is rapidly approaching 160 million tokens, showcasing the growing adoption of XRP within the decentralized finance landscape.

user avatarZainab Kamara

Arbitrum Security Council Takes Emergency Action to Freeze Funds Linked to KelpDAO Exploit

chest

The Arbitrum Security Council has taken emergency action to freeze 30,766 ETH linked to the KelpDAO exploit, following law enforcement input.

user avatarSon Min-ho

The Ultimate Hodl Story: A Journey to 1 Billion

chest

An investor turned a modest investment into a billion-dollar profit by holding onto Bitcoin through multiple bear markets.

user avatarAyman Ben Youssef

Strategy Finalizes Significant Bitcoin Purchase.

chest

Strategy has made a significant move in the cryptocurrency market by adding 34,164 BTC to its reserves, amounting to 254 billion.

user avatarNguyen Van Long

Crypto Analyst Predicts Major Shakeout in Altcoin Market

chest

Michael van de Poppe forecasts a significant decline in altcoins, likening it to the early internet bubble. He believes that 99% of altcoins are headed to zero, viewing this as a necessary cleanup rather than a collapse. Despite this stark prediction, he remains optimistic about the future of Bitcoin and Ethereum.

user avatarTando Nkube

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.