The U.S. Securities and Exchange Commission (SEC) has charged brothers Jonathan and Tanner Adam with orchestrating a $60 million pyramid scheme involving a fraudulent crypto trading platform.
SEC Charges
According to the SEC complaint, the Adam brothers defrauded more than 80 investors between January 2023 and June 2024. They lured investors with promises of monthly returns as high as 13.5%, claiming that Jonathan Adam had developed an automated trading bot that could identify profitable arbitrage opportunities on a crypto asset platform. The SEC says these claims are completely fabricated.
Assets Frozen
The commission also issued emergency asset freezes against the brothers and their companies, GCZ Global LLC and Triten Financial Group LLC. The funds were allegedly diverted for personal luxuries, including a $30 million condominium in Miami for Tanner Adam and recreational vehicles purchased by Jonathan Adam using $480,000 in investor funds.
Impact on Investors
The complaint also reveals that Jonathan failed to disclose his prior convictions for three counts of securities fraud. The SEC is seeking permanent injunctions, restitution of ill-gotten gains, preliminary interest and civil penalties against the brothers. This case underscores the agency’s commitment to cracking down on fraudulent crypto schemes and highlights the risks investors face in the rapidly evolving digital asset space.
The case highlights the importance of investor vigilance and the ongoing efforts of the SEC to combat fraud in the cryptocurrency industry.
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