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SEC secures judgements against Bitconnect promoters

Sat 21 Aug 2021 ▪ 9h19 ▪ 3 min read — by Katie Donaldson

The US Securities and Exchange Commission (SEC) has obtained judgments against promoters of Bitconnect. The litigation release published on Friday, 20th August, indicates that the SEC won $12 million (~£8.81 million) in Bitcoin (BTC) and fiat money from Bitconnect’s Michael Noble, Joshua Jeppesen and Laura Mascola.

Only $12 million for a $2.5 billion scam

The Bitconnect story, one of the most famous Ponzi schemes of the crypto world, is nearing its end. The case began in May, targeting six of BitConnect’s alleged promoters. SEC has reached a settlement with three of them — Jeppesen and Noble were processed as defendants, while Laura Mascola was processed as a relief defendant. 

The agency included other names in their complaint, such as Ryan Maasen, Craig Grant and the more well-known Trevon Jones. This means that some of the scheme’s participants are still under investigation. 

The SEC accused Bitconnect of running a $2.5 billion (~£1.83 billion) operation that facilitated the purchasing and selling of unregistered securities. 

“On August 13, 2021, the United States District Court for the Southern District of New York entered a judgment against Michael Noble (a.k.a. Michael Crypto) and a final judgment against Joshua Jeppesen for their involvement with BitConnect and the promotion of its “lending program.” The court also entered a final judgment against Laura Mascola as a relief defendant. Pursuant to the judgments, Jeppesen and Mascola have been ordered to pay more than $3.5 million (~£2.57 million) and 190 Bitcoin in disgorgement and prejudgment interest,” SEC’s officials stated. 

As for Noble, the size of his fine remains undetermined. 

What is Bitconnect?

Bitconnect started in 2016 and allowed users to lend Bitconnect coins (BCC) for high yields. The platform introduced high yield lending well before the swathe of decentralized finance (DeFi) liquidity pools were conceived.

The Ponzi accusations really started to gain momentum when Bitconnect shut down the earning platform on 16th January 2018.

The shutdown was due to the fact that US law enforcement and regulators from North Carolina and Texas issued cease and desist orders against the Bitconnect business and administrators.

Bitconnect became world-famous after its awful presentation, which gave birth to this Carlos Matos meme.

The SEC announced two judgments in its ongoing case against BitConnect, a crypto lending platform that the SEC contends was a $2.5 billion (~£1.83 billion) unregistered securities offering.

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Katie Donaldson avatar
Katie Donaldson

I went full time crypto back in June 2018, and have never looked back. I want to help persuade as many people as possible to come and build the decentralised future! Let’s go!

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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