The Securities Exchange Commission announced charges against four individuals for their role in Trade Coin Club, a “fraudulent crypto Ponzi scheme” that purportedly raised nearly $300 million in bitcoin from over 100,000 investors.
According to the Friday press release, David Hirsch, Chief of the Enforcement Division’s Crypto Assets and Cyber Unit, alleged that “Braga used Trade Coin Club to steal hundreds of millions from investors around the world and enrich himself by exploiting their interest in investing in digital assets. To ensure our markets are fair and safe, we will continue to use blockchain tracing and analytical tools to aid us in the pursuit of individuals who perpetrate securities fraud.”
According to the SEC’s complaint, the perpetrators’ violations range from the antifraud and securities registration provisions, broker-dealer registration provisions, and federal securities laws.
The complaint seeks injunctive relief, disgorgement of profits, and civil penalties.
The SEC filed a separate complaint against Jonathan Tetreault who agreed to settle the SEC’s charges without admitting or denying their claims.