SEC Claims Two Brothers Ran a $60 Million Crypto Ponzi Scheme

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI

  1. SEC Issues Ponzi Warning
  2. Details on the Matter
  3. Investigation Results


    4. The United States Securities and Exchange Commission (SEC) accuses two brothers of operating a $60 million crypto Ponzi scheme involving a non-existent trade bot.

    SEC Issues Ponzi Warning

    In a complaint filed on August 26 in the United States District Court for the Northern District of Georgia, Atlanta, the SEC alleges that Jonathan Adam and his brother Tanner Adam deceived over 80 investors with claims of a crypto bot that could provide a 13.5% monthly return.

    Details on the Matter

    From January 2023 to June 2024, the brothers told investors that their bot identified arbitrage trading opportunities on crypto platforms and could simultaneously buy and sell assets to profit from small price differences in different markets. Investors were informed that their funds would go into a lending pool to finance instant loans and complete transactions, with assets being borrowed and returned within the same blockchain transaction. Justin Jeffries, Deputy Chief of Enforcement at the SEC’s Atlanta Regional Office, stated the trading plan was entirely fraudulent, and the bot did not exist.

    Investigation Results

    Instead, the brothers misappropriated $53.9 million out of the $61.5 million collected. Investors received some money back, but the majority was used to finance a luxurious lifestyle, including purchasing cars and constructing a multi-million-dollar apartment complex. To halt the scheme, the SEC obtained emergency asset freezes for Jonathan and Tanner Adam’s companies GCZ Global, LLC, and Triten Financial Group LLC. The SEC accuses Jonathan Adam of misrepresenting his background to gain investors’ trust and failing to disclose three previous convictions for securities fraud. The SEC seeks permanent injunctions against the brothers’ companies, the disgorgement of all funds taken from investors, and civil penalties.

    In June, blockchain data analysis platform TRM Labs reported that $7.8 billion was paid to crypto pyramid and Ponzi schemes worldwide in 2022.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Cardano's Leios Scaling Plan Unveiled

Cardano has unveiled a detailed roadmap for its Leios scaling plan, targeting significant increases in transaction capacity with a staged approach for adjustments based on real-world performance.

user avatarKofi Adjeman

Cardano's New Scaling Test Reveals Key Performance Metrics

A recent report by Input Output highlights the performance improvements of the Cardano scaling test, focusing on throughput and completion time.

user avatarSatoshi Nakamura

Crypto Market Declines Following Global Selloff

The crypto market faced a significant decline over the weekend, with Bitcoin falling 11%, Ethereum dropping 26%, and Solana decreasing by 28%, following a global market selloff.

user avatarNguyen Van Long

Cardano Developers Launch Public Test Network for Dijkstra Upgrade

Cardano developers have launched a public test network for the Dijkstra upgrade, enabling developers to test and prepare for new protocol rules.

user avatarJesper Sørensen

Tether Introduces New Framework to Enhance Bitcoin Mining Operations

Tether has announced a new initiative aimed at simplifying Bitcoin mining operations by integrating existing equipment through a common software framework.

user avatarRajesh Kumar

Electrum Wallet Vulnerability Could Lead to Unintended Payments

Electrum disclosed a vulnerability in its wallet that could lead to unintended payments due to a flaw in fee adjustments.

user avatarLucas Weissmann

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.