The U. S. Securities and Exchange Commission (SEC) has been granted court orders that direct Jonathan and Tanner Adam to refrain from dealing in their assets, as part of an enforcement action. The two brothers were accused of embezzling $60 million through a Ponzi scheme using the figment of a faux crypto trading bot. More than 80 investors across the United States were defrauded through this scheme through the provision of high returns on non-existent investments.
Empty promises and lavish lifestyles
The two brothers were accused of luring innocent investors from January 2023 to June 2024 with as many as 13. 5% monthly profits which they said could be earned by this fake crypto trading bot. They claimed that the bot was capable of identifying arbitrage opportunities on the market.
The SEC states that this specific bot and the lending pool that the investors were introduced to were actually fictitious. Instead of investing the money as required, the brothers used the money to lead a lavish lifestyle such as acquiring a $30 million Miami condominium and luxury vehicles.
When developing the scheme further, the SEC was quick in reacting and obtained orders for the emergency removal of assets in order to prevent any more loss incidents. It is now looking for permanent injunctions, money for such fraudulent schemes, and civil fines against Adams and their companies GCZ Global LLC and Triten Financial Group LLC.
A stern message from the SEC
In the words of Justin C. Jeffries, an Associate Director of Enforcement in the SEC’s Atlanta Regional Office, the situation was rather severe, as “The Adam brothers took money from people promising high returns on investment through a cryptocurrency which did not exist. ”
The recent actions of the SEC can serve as a reminder of the threats which exist and the need to remain extremely careful in the modern world that has seen so many advances in crypto world.
Also Read : Why Crypto Market is Down Today? Key Factors Driving $319 Million Liquidation
Source: https://coinpedia.org/news/sec-cracks-down-on-60m-crypto-ponzi-scheme-how-two-brothers-fooled-80-investors/