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SEC Charges Two Brothers Over Alleged $61 Million Crypto Investment Ponzi Scheme

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by Giorgi Kostiuk

a year ago

  1. SEC Charges Against Adam Brothers
  2. Promising Returns and Creating a Crypto Bot
  3. Use of Investor Funds for Personal Benefits


    4. The Securities and Exchange Commission (SEC) has filed a complaint against two brothers, Jonathan and Tanner Adam, for allegedly orchestrating a crypto Ponzi scheme valued at over $61 million.

    SEC Charges Against Adam Brothers

    According to the SEC, the two brothers, Jonathan Adam and Tanner Adam, orchestrated a crypto Ponzi scheme via their two firms, GCZ Global LLC and Triten Financial Group LLC, raising over $61 million from over 80 investors.

    Promising Returns and Creating a Crypto Bot

    As per the lawsuit filed by the SEC, the duo convinced and lured victims by promising a monthly investment return of up to 13.5%. The brothers told the investors that the crypto bot was operating on a crypto trading platform where it identified arbitrage trading opportunities. They also stated that the investor funds would be utilized in a lending pool that would fund flash loans through smart contracts to execute these arbitrage trades. However, the SEC alleges in the lawsuit that there isn’t a lending pool as promised by the brothers.

    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

    Use of Investor Funds for Personal Benefits

    According to the lawsuit, the brothers used the investor funds to pay returns to the existing investors and to fund their luxury lifestyle. The SEC alleged that Tanner used the funds to make payment for building a Miami condominium worth $30 million. Jonathan was accused of using the 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.

    The SEC added that they will use all the tools at their disposal to stop those who are exploiting new technologies to scam investors.

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