Bitcoin scammers in the closet: A $295 million Ponzi scheme collapses

Bitcoin pyramid – The scams and other spam are facts that are becoming, over the years, all too common in our still nascent crypto environment. The DRY (Securities and Exchange Commission) no longer knows where to turn and regularly seeks to bring to justice the builders and other architects in scams who build pyramids of Ponzi, still high. Our case of the day is a painful example of this.

A high pyramid of 82,000 bitcoins

We found out about it last weekend. The SEC demolished a new ponzi schemea nasty cryptocurrency scam that would accumulate bitcoins around the world.

These are 4 robbers who have awakened the wrath of the American financial policeman: the founder of the company Trade Coin Club, crypto trading platform, and 3 people who helped him in his process. The latter would have, thanks to their stratagem, raised 82,000 bitcoin (i.e. the tidy sum of $295 million at the time) during a two-year period in 2017, a good time for the king of cryptocurrencies.

The 100,000 investors victims were coaxed by promises of 0.35% daily return on their investments in the king of cryptocurrencies. True to the scheme of the renowned American scammer, Mr. Ponzi, the scammers then paid the returns of some with the investments of others.

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A $ 295 million Ponzi scheme dismantled by the SEC

The SEC therefore accuses Mr Braga (at the initiative of the scam) of having used investors’ money to pay copiously J.Paradise, K.A. Taylor and J.Tetreault. He didn’t forget to pay himself, of course, in bitcoins. They would have received:

  • DT Braga: 8,396 BTC corresponding to 55 million dollars;
  • The other 3: 894 BTC.

Beyond the fact that these men have a very limited sense of sharing, their act is above all a offense in the United States. They violated several federal securities laws. The accusations are numerous, it is both the violation:

  • Anti-fraud provisions;
  • Registration of securities;
  • Registration of brokers.

The SEC therefore confirms its desire for demolition, by knocking down a new pyramid of Ponzi. Illustration of a scourge of our dear cryptographic ecosystem, the approach of the financial policeman is not isolated. Europe also confirmed, after the slow demolition of our dreams of decentralizationchasing the crypto scams and scams on its lands.

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