InsideBitcoins.com

SEC Cease and Desist Alleges Scam Claiming to Return 224,923% on Investment

Australians Lost AU$6 Million in 2018 to Cryptocurrency Scams

The United States Securities and Exchange Commission (SEC) is filing against a former senator of the Washington state over an alleged cryptocurrency scam, a report from CoinDesk notes.

So far, the group has “obtained an asset freeze and other emergency relief to halt an ongoing securities fraud” regarding one David Schmidt. He allegedly worked with Nicole Bowdler and Robert Dunlap to sell a cryptocurrency called the Meta 1 Coin. This was done via an unregistered securities offering.

Apparently, the group had said their asset was risk-free, couldn’t drop in value, and would return over 224,000 percent on an investment.

However, these assets were never handed out, and allegedly the three used profits to fund their own personal ventures rather than for the project:

“The complaint alleges that some of the investor funds were used to buy luxury automobiles, including a $215,000 Ferrari.  In all, the complaint alleges the defendants raised more than $4.3 million from more than 150 investors in and outside the U.S.”

Speaking on the matter is one David Peavler, the Regional Director at the Fort Worth Regional Office of the SEC:

“As we allege, the defendants made audacious claims about the Meta 1 Coin and would say almost anything to separate investors from their money. Investors should always look skeptically at promoters who claim that their investment cannot lose value or that investors will receive massive returns.”

Top brokers for buying and trading cryptocurrencies

  • Platform
  • Features
  • Rating
  • Visit Site
  • Excellent choice for U.S. customers
  • Paypal accepted
  • CySEC & FCA regulated
  • Buy 12+ cryptocurrencies
4.5/5

eToro Reviews

    eToro Reviews

    https://insidebitcoins.com/visit/etoro-newsCreate your account
    Hide eToro Reviews
    • Best broker for non-US countries
    • Established stock-exchange listed company
    • Trade crypto CFDs, forex and stocks
    • No withdrawal or deposit fees and low spreads
    4.5/5

    Plus500 Reviews

      Plus500 Reviews

      https://insidebitcoins.com/visit/plus500-newsCreate your account
      Hide Plus500 Reviews
      Remember, all trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
      Avatar

      Cryptocurrency and games writer. Looking to the future by studying how these two industries can blend.

      Leave a Reply

      Your email address will not be published. Required fields are marked *