SEC Charges Five Individuals for Illegally Promoting BitConnect Ponzi Scheme

The US Securities and Exchange Commission has charged five people associated with BitConnect for illegally selling unregistered digital assets, which ended up raising more than $2 billion from individual investors.

According to Reuters, the SEC has alleged BitConnect, a high-yield investment program Ponzi scheme, which was connected to an open-source cryptocurrency that could be traded for Bitcoin, sold digital securities without registering them as per US securities laws.

The agency named Trevon Brown, Craig Grant, Ryan Maasen, and Michael Noble among BitConnect’s promoters that advertised the illegal securities to potential investors via YouTube videos. The SEC has also charged Joshua Jeppesen, who represented BitConnect at numerous conferences and acted as a liaison between the promoters and the company.

BitConnect assured prospective retail traders that it would use their money to trade and subsequently profit from the volatility of Bitcoin, promising to transfer the profits back to the investors. At the time, BitConnect guaranteed that profits could be as high as 40% each month.

According to the SEC, the initial coin offerings should have been classified as securities offerings, and thus are subject to the agency’s laws on offerings. The rules require companies that sell such securities to file registration and disclosure documents.


Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Steadright To Conduct Multi-Phased Exploration At Historic Goundafa Polymetallic Mine

Goliath Resources Drills 10.72 g/t Gold Over 7.83 Metres At Surebet

Related News

SEC Staffers Charged in $1 Million Insider Trading Scheme

Federal prosecutors allege that Justin Chen, 31, and Jun Zhen, 29, exploited their privileged access...

Monday, June 30, 2025, 08:14:02 AM

SEC Vs. Ripple: Judge Rules XRP Is Not A Security… Except When It Is

In a significant development, Ripple Labs emerged partially victorious in the long-standing legal battle against...

Sunday, July 16, 2023, 09:00:00 AM

SEC Charges All Sides of SPAC Transaction Including CEOs Over Misleading Claims

Wall Street’s latest beloved darlings, SPACs, or special purpose acquisition companies, may soon meet their...

Wednesday, July 14, 2021, 02:29:00 PM

So Was SEC’s Bitcoin ETF Tweet Fake Or Not?

Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), took to X...

Wednesday, January 10, 2024, 11:00:00 AM

Coinbase Preemptively Takes SEC To Court, But Is It A Smart Move?

It seems Coinbase Global (NASDAQ: COIN) is taking first mover advantage after the crypto exchange...

Tuesday, April 25, 2023, 10:34:09 AM