US SEC Files Charges Against Four For $295 Million User Fraud
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The Securities and Exchange Commission (SEC) has named four people in legal action. The US SEC has named Douver Torres Braga, Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault in a civil complaint for running a fraudulent Ponzi scheme under the name Trade Coin Club defrauded over 100,000 investors out of 82,000 Bitcoin worth $295 million.
Torres Braga founded Trade Coin Club between 2016 and 2018, according to information from the United States District Court for the Western District of Washington.
We charged Douver Torres Braga, Joff Paradise, Keleionalani Akana Taylor, and Jonathan Tetreault for their roles in Trade Coin Club, a $295 million fraudulent crypto Ponzi scheme.
— U.S. Securities and Exchange Commission (@SECGov) November 4, 2022
Furthermore, he has been successful in attracting many investors to the multi-level platform that uses trading bots to execute transactions correctly. The SEC also accused Braga and Paradise of misleading investors by claiming the bot completed “millions of microtransactions” per second and that investors would receive daily profits of at least 0.35 percent.
According to allegations, Braga stole money from investors and then used some of it to hire Taylor, Tetreault, and Paradise as part of a global network of Trade Coin Club promoters.
Despite how they advertised their services, Trade Coin Club did not have a trading bot, according to the authorities. It was a typical Ponzi scheme, with previous investors rewarded with new contributions from their downline. According to David Hirsch, the Enforcement Division’s head of the Crypto Assets and Cyber Unit:
The Case’s Compositions, Their Response, and the US SEC Investigative Team
Braga, the group’s leader, was charged with violating securities registration and anti-fraud laws. Taylor and Tetreault, on the other hand, violated the Federal Securities Laws’ requirements for broker-dealer registration and the sale of securities. However, the SEC investigative team for this case was led by Serafima K. McTigue, a member of the Crypto Assets and Cyber Unit, and his colleague Victor Hong, a member of the San Francisco Regional Office.
The Crypto Assets and Cyber Unit’s additional assistance experts include Jorge G. Tenreiro, Mr. Hirsch, and Steven Buchholz. Furthermore, the SEC’s Office of Investor Education and Advocacy (OIEA) and the Retail Strategy Task Force (RSTF) of the Division of Enforcement have advised the public to exercise caution and conduct research before using any cryptocurrency-based platform that promotes Ponzi pyramid schemes.
The Purpose of The US SEC
The SEC’s mission in the United States is to protect people from fraudulent activity, which benefits the country’s economy, financial markets, and people’s lives. It is worth noting that the SEC achieves this by enforcing market manipulation laws.
The effects of the 1929 Wall Street Crash can still be felt today. For over 93 years, the SEC has been preserving fair, orderly, and efficient markets, protecting investors, and promoting capital formation.
As a result, before entering the investing market, investors should conduct their own research using Investor.gov. Investors can use this software to learn more about digital assets and bitcoin investing strategies, as well as fraud red flags.
