The Securities and Exchange Commission (SEC) of the US Stock Exchange has sued an online cryptocurrency lender, accusing its executives of a $2 billion investment fraud.
According to Arab Net, the Bitconnect platform and its founder Satish Company offered to invest securities in a loan program that is supposed to generate huge returns according to the platform.
The platform was supposed to use its automated volatile brokerage program to grow those deposited funds, according to a statement issued by SEC Wednesday.
But SEC asserted that instead of using the money for these investments and exchanges, Bitconnect and its executives withdrew it for their own benefit by transferring it in cryptocurrency to digital wallets in their name and in the name of their promoter. , Glenn Arcaro, who was responsible for attracting clients to his purpose-built website.
The New York Securities Commission's regional director, Lara Shalloff Miraban, explained that SEC accuses them of stealing billions of dollars from individuals around the world by exploiting their interest in cryptocurrencies.< /p>
The SEC's lawsuit accuses these entities of violating the anti-fraud and securities filing provisions required by federal law.
