90 entries tagged “sec”.
A ~$16M token offering (SAFTs for 'Bitcoin Latinum' / LTNM) that the SEC charged in 2026 as fraud: founder Donald Basile falsely called LTNM 'the world's first insured digital asset' backed by an 'existing trust,' neither of which existed, and diverted investor funds for personal use (including a $160,000 horse).
A 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
A 2017–2018 ICO (BCT tokens, ~$30M) for a 'Blockchain Terminal' — a Bloomberg-style crypto trading terminal. The SEC and DOJ said convicted ex-hedge-funder Boaz Manor secretly ran it under a fake identity ('Shaun MacDonald'), using associate Edith Pardo as a front, and lied about the product's adoption.
A 2018 ICO for 'Crowd Machine Compute Tokens' (CMCT) that the SEC charged as fraudulent: founder Craig Sproule raised ~$33M to build a decentralized app platform but secretly diverted $5.8M to South African gold-mining entities. Consent judgments ordered ~$20M+ and barred Sproule as an officer/director.
A purported gold/art-backed digital asset that the SEC called a fraud: it falsely claimed backing by $1B in art or $2B in gold and 'risk-free' returns up to 224,923%, raising $4.3M+ from 150+ investors. Defendants were jailed for contempt; founder Robert Dunlap was later convicted of mail fraud.
A Las Vegas company that the SEC said was a $12M+ Ponzi scheme: it told 277+ investors their money would be invested in securities and crypto via an 'artificial intelligence supercomputer' guaranteeing 20–30% annual returns. The SEC halted it in 2021; over 90% of funds came from investors.
An ICO for the DROP token built around a fake 'Dex' trading bot. The SEC said it raised ~$1.9M while claiming $54M from 34,000 investors, and that the founders falsified evidence during the probe. Founders Jeremy McAlpine and Zachary Matar pleaded guilty to securities fraud (36 and 30 months).
A mobile crypto-investing app that the SEC and New York AG said was fraudulent: it sold unregistered 'CSD' tokens, misrepresented its management, charged hidden fees, and traded in customers' accounts without permission. A NY court shut it down in 2021 with a $3M judgment against CEO Delgerdalai Davaasambuu.
A blockchain 'universal shopper profile' startup whose 2017–2018 ICO raised ~$42.5M. The SEC and New York AG said it was fraudulent — fake retailer partnerships, no working product. Founder Eran Eyal pleaded guilty to felony securities fraud (NY) and settled with the SEC.
A 2017–2018 ICO for the VERI token that the SEC said raised ~$14.8M via false statements and that founder Reginald Middleton manipulated on secondary markets. Middleton and Veritaseum settled with the SEC in 2019 for ~$9.5M and a permanent digital-securities bar.
Founder behind Bitcoin Latinum (LTNM). The SEC charged him in 2026 with defrauding investors of ~$16M by falsely claiming the token was insured and asset-backed, and misappropriating funds for personal use (including a $160,000 horse).
A promoter (and SEC recidivist) who sold Green United's 'Green Boxes,' allegedly acting as an unregistered broker and misrepresenting GREEN's value and returns. Charged by the SEC for fraud and registration violations.
Founder and CEO of Loci, which ran the LOCIcoin ICO. The SEC charged him with fraud for false claims about Loci's revenue, staff, and user base (raising $7.6M) and for misusing $38K of investor funds; he settled with an officer/director bar.
A New Jersey associate of Boaz Manor whom the SEC said acted as a 'front' presented as the owner of the Blockchain Terminal businesses to conceal Manor's control. Charged civilly by the SEC and criminally in 2020.
A previously convicted Canadian ex-hedge-fund manager who, per the SEC and DOJ, secretly ran the $30M Blockchain Terminal ICO under the alias 'Shaun MacDonald' to hide his criminal past. Charged civilly and criminally in 2020.
Australian founder of Crowd Machine and Metavine who the SEC said ran a fraudulent CMCT ICO (~$33M) and secretly diverted $5.8M to South African gold mining. He consented to antifraud judgments, a $195K penalty, and an officer/director bar.
A Meta 1 Coin promoter (and Robert Dunlap's partner) charged by the SEC in 2020 over the fraudulent, falsely gold/art-backed coin offering.
A former Washington state senator who helped market the Meta 1 Coin, telling investors it was secured by $2B in gold under audit. The SEC charged him in 2020 and a court jailed him for civil contempt for defying its orders.
Son of Joy Kovar and a 'recidivist' co-operator of Profit Connect, who promoted its fake 'AI supercomputer.' Charged civilly by the SEC in 2021 and later indicted on federal fraud and money-laundering charges in 2025.
Founder and president of Profit Connect, which the SEC called a $12M+ Ponzi scheme built on a fictitious 'AI supercomputer.' The SEC said she moved millions of investor dollars to her personal accounts.
Co-founder of Dropil and its fraudulent DROP-token ICO. He pleaded guilty to securities fraud in 2021 and was sentenced to 30 months in prison.
Co-founder of Dropil, which ran a fraudulent DROP-token ICO around a fake 'Dex' trading bot. He pleaded guilty to securities fraud in 2021 and was sentenced to 36 months; he also gave false testimony and manufactured fake evidence during the SEC probe.
Co-founder and CEO of the Coinseed crypto app. The SEC and NY AG said he sold unregistered CSD tokens, faked his management credentials, and traded customers' funds without permission; a NY court entered a $3M judgment and shut the platform down in 2021.
Founder and CEO of Shopin. He pleaded guilty to felony securities fraud (NY Martin Act) over Shopin's ~$42.5M ICO — built on fake retailer partnerships and a nonexistent product — and also admitted fraud tied to two earlier companies; he settled parallel SEC charges.
Founder of Veritaseum and its VERI token. The SEC alleged he ran a fraudulent ICO and manipulated VERI's price; he settled in 2019 for ~$9.5M and a permanent bar from digital-securities offerings, without admitting or denying the allegations.
Chief technology officer of SafeMoon. He pleaded guilty in February 2025 to conspiracy to commit securities fraud and wire fraud over the scheme that misappropriated investor funds from the SafeMoon token's 'locked' liquidity; he is awaiting sentencing.
Co-founder of Centra Tech, whom the SEC called a 'mastermind' of its fraudulent 2017 ICO. He pleaded guilty but, citing 'extraordinary' cooperation, was sentenced in 2022 to time served (no prison) and ~$2.9M restitution.
Co-founder of Centra Tech, the 2017 ICO that raised ~$25–32M on fake executives and fabricated partnerships with Visa/Mastercard. He pleaded guilty to fraud conspiracies and was sentenced to one year and one day in prison.
Co-founder of Bitqyck (Bitqy / BitqyM tokens). He settled SEC fraud charges in 2019 and was sentenced in 2022 to 50 months in prison for tax evasion tied to misappropriated investor funds.
Co-founder of Bitqyck, which sold the Bitqy and BitqyM tokens. The SEC said the firm raised ~$24M from 13,000+ investors via false claims; Bise settled SEC fraud charges (2019) and was sentenced in 2022 to 50 months for tax evasion.
Quebec promoter behind the PlexCoin/PlexCorps ICO, which the SEC said raised up to $15M by promising a 1,354% return in under a month. The SEC obtained a ~$7M judgment (2019); a Quebec court sentenced him in 2024 to 42 months in prison.
The Brooklyn entrepreneur behind the RECoin and Diamond Reserve Club ICOs. His was the first criminal case to test whether ICO tokens are securities; he pleaded guilty to securities-fraud conspiracy and was sentenced in 2019 to 18 months in prison.
Founder of Bitcoin Savings and Trust, who operated under the handle 'pirateat40' and ran what the DOJ called the first federal criminal securities-fraud case involving Bitcoin. He pleaded guilty in 2015 and was sentenced in 2016 to 18 months in prison.
A 2018 ICO that billed its B2G token as 'the next generation of Bitcoin.' New Jersey issued a cease-and-desist calling it a fraudulent unregistered securities offering, and the SEC charged actor Steven Seagal for touting it without disclosing he was promised $250K cash plus $750K in tokens.
Two 2017 ICOs run by Brooklyn's Maksim Zaslavskiy, marketed as tokens backed by real estate and diamonds that did not exist. The case produced the first U.S. criminal conviction for an ICO fraud; Zaslavskiy was sentenced to 18 months in 2019.
A 2017 ICO by Dominic Lacroix that promised returns of more than 1,300% in under a month. It was the first case brought by the SEC's new Cyber Unit; the SEC obtained an emergency freeze and a multimillion-dollar judgment.
A purported blockchain marketplace whose 2017–2018 ICO of 'OPP Tokens' raised ~$600K from ~200 investors. The SEC charged founder Sergii Grybniak with fraud for falsely calling the ICO 'SEC registered/compliant' and exaggerating the platform's users; a 2025 final judgment imposed a $100K penalty.
Founder of Opporty, whose OPP-token ICO the SEC charged as fraudulent — falsely claiming it was 'SEC compliant/registered' and exaggerating the platform's users. A 2025 final judgment ordered a $100K penalty and barred him from securities offerings.
A Utah operation that the SEC says raised ~$18M selling 'Green Boxes'/'Green Nodes' that supposedly mined a 'GREEN' token on a 'Green Blockchain.' In reality GREEN was a non-mineable ERC-20 the founder pre-minted, and the boxes mined Bitcoin that wasn't given to investors.
A token (ORME) sold via the Ormeus Global MLM that the SEC said defrauded thousands of investors of $124M+. The Barksdale siblings falsely claimed it was backed by a $250M crypto-mining operation producing $5.4–8M/month — they had abandoned mining in 2019 after under $3M in total revenue.
A global crypto Ponzi/pyramid scheme (later rebranded 'Weltsys') that the DOJ and SEC say defrauded thousands of mostly Spanish-speaking investors of ~$8.4M with promises of guaranteed returns from nonexistent crypto mining and trading. Senior promoter Juan Tacuri got the 20-year statutory maximum.
A dog-themed crypto token (Saitama Inu, plus the related SaitaRealty) that the SEC and DOJ charged in October 2024 as a fraudulent, manipulated securities offering. Promoters allegedly hyped a 'Saitama ecosystem' while secretly dumping holdings and hiring market makers (Gotbit, ZM Quant) to fake volume.
A purported crypto hedge fund that promised ~1% daily returns from an 'EX BOT' trading robot. The SEC and DOJ called it a Ponzi scheme with ~$40M+ in investor losses; head trader Joshua David Nicholas pleaded guilty and was sentenced to 51 months.
A crypto hedge fund (with affiliate VQR Multistrategy Fund) that claimed ~$90M in assets and a market-neutral arbitrage strategy. Founder Stefan Qin pleaded guilty to securities fraud after draining investor capital; he was sentenced in 2021 to 7.5 years.
A purported crypto mining and trading platform (MCC) that the U.S. DOJ called a $62M global investment fraud. Prosecutors say founder Luiz Capuci Jr. sold 'Mining Packages' and 'Trading Bots' with guaranteed returns but diverted investor funds to wallets he controlled.
Founder and CEO of USFIA, which sold the gemstone-'backed' GemCoin. He fraudulently obtained ~$147M from 72,000 investors in one of the largest pyramid schemes prosecuted in the Central District of California; pleaded guilty and sentenced in 2021 to 10 years.
Founder of Green United, which the SEC says raised ~$18M on a fake 'GREEN' mining story. He pre-minted GREEN as an ERC-20 token and sold 'Green Boxes' that actually mined Bitcoin kept by the company. Charged by the SEC for fraud and registration violations.
Co-creator of Ormeus Coin (JonAtina Barksdale) who led production of the promotional materials behind the $124M fraud. The SEC won a default judgment ordering disgorgement and a ~$23.1M civil penalty.
Co-creator of Ormeus Coin who led worldwide roadshows promoting it with false claims of a $250M mining operation. The SEC won a default judgment over the $124M fraud, and the DOJ brought parallel criminal securities-fraud charges.
A lead operator of the Meta 1 Coin fraud, which falsely claimed gold/art backing and risk-free returns. Jailed for civil contempt during the SEC case, he was later convicted of mail fraud and sentenced in 2026 to 23 years in prison.
A top U.S. promoter of HyperFund (aka 'Bitcoin Beautee'). The DOJ said she earned over $3.7M from the ~$1.89B pyramid scheme; she pleaded guilty in January 2024 to conspiracy to commit securities fraud and wire fraud and settled parallel SEC charges.
Brazilian national whom the SEC and DOJ identify as the creator of Forcount Trader Systems, the ~$8.4M crypto Ponzi/pyramid scheme. Charged civilly and criminally in 2022.
A senior promoter of the Forcount (Weltsys) crypto Ponzi scheme. He pleaded guilty to wire-fraud conspiracy and, in October 2024, received the 20-year statutory maximum sentence plus ~$3.6M restitution.
Founder of CryptoFX, a Houston-based $300M Ponzi scheme that targeted Latino investors. The SEC says he used most investor funds for fake returns and personal spending; he pleaded guilty to wire fraud and was sentenced to prison.
Founder/creator of SafeMoon. Charged by the SEC and DOJ in 2023 over the SafeMoon scheme; per the DOJ he remains at large while co-defendants Braden Karony (convicted) and Thomas Smith (pleaded guilty) faced sentencing.
A former Saitama executive (alias 'Mkay Saitama') charged by the SEC and DOJ in October 2024 over the manipulation of the Saitama Inu and SaitaRealty tokens. A UK/India resident, he has been fighting U.S. extradition.
The self-styled 'head trader' of the EmpiresX crypto Ponzi scheme, who was touted as a licensed trader despite a prior NFA bar. He pleaded guilty to securities-fraud conspiracy and was sentenced to 51 months in prison.
Australian founder of the Virgil Sigma and VQR crypto hedge funds. He pleaded guilty to securities fraud after draining a fund that claimed ~$90M, and was sentenced in 2021 to 7.5 years in prison and $54.8M forfeiture.
Founder and CEO of Titanium Blockchain Infrastructure Services (TBIS), whose BAR token ICO raised ~$21M. He pleaded guilty to securities fraud and was sentenced in 2023 to 51 months in prison.
Founder and CEO of AriseBank, marketed as the world's 'first decentralized bank.' He pleaded guilty to securities fraud over the AriseCoin ICO and was sentenced in 2021 to five years in prison plus ~$4.26M in restitution.
Identified by U.S. prosecutors as the operational leader of Forsage, a 'DeFi' platform they call a ~$340M Ponzi and pyramid scheme. He was indicted in the U.S. in 2023 (charges pending) and, per reporting, was convicted in absentia in Georgia in 2024.
Founder of PGI (Praetorian Group International), which raised $201M+ as a Bitcoin Ponzi/MLM scheme (2020–2021). He pleaded guilty in 2025 to wire fraud and money laundering and was sentenced in February 2026 to 20 years in prison.
Founder of GAW Miners and ZenMiner, which sold 'hashlets' and the PayCoin token. He pleaded guilty to wire fraud over a ~$9.18M virtual-currency Ponzi scheme and was sentenced in 2018 to 21 months in prison and over $9M in restitution.
Co-founder of Mining Capital Coin. The SEC charged him alongside Luiz Capuci Jr. over MCC's allegedly fraudulent mining-package sales and obtained a default judgment of roughly $46M against the pair in 2025.
Founder and CEO of Mining Capital Coin (MCC). The U.S. DOJ indicted him in 2022 for an alleged $62M global crypto investment fraud built on 'Mining Packages' and 'Trading Bots'; the SEC won a default judgment against him in a parallel civil case.
A 2014–2015 virtual currency created by Homero 'Josh' Garza via GAW Miners/ZenMiner. The SEC and DOJ said it was a Ponzi scheme built on 'Hashlets' that didn't exist plus false claims of a $100M reserve. Garza pleaded guilty to wire fraud; victims lost $9M+.
A 2021 Ethereum token (unrelated to Ethereum) promoted by celebrities. The SEC charged Kim Kardashian for touting it without disclosing a $250,000 payment; she settled for $1.26M. A private 'pump-and-dump' class action was later dismissed.
CEO of SafeMoon. Convicted by a federal jury in May 2025 of securities fraud, wire fraud, and money laundering, and sentenced to 100 months in prison.
Co-founder of Centra Tech, the 2017 ICO that the SEC says raised over $32M on fabricated partnerships. Pleaded guilty and was sentenced to 8 years in prison.
An early Bitcoin Ponzi (2011–2012) run by Trendon Shavers ('pirateat40'), who promised up to 7% weekly returns and took in ~764,000 BTC. The SEC won a $40M+ judgment, and in 2016 Shavers was sentenced to 18 months — the first U.S. federal securities-fraud case involving Bitcoin.
A crypto lending program in which Gemini customers lent assets to Genesis for yield. After Genesis froze withdrawals in November 2022, ~340,000 Earn investors were locked out of ~$900M. The SEC charged both firms in January 2023; Genesis later went bankrupt and settled for $21M.
A U.S. crypto lender that, in February 2022, paid $100M to settle SEC and 32-state charges that its BlockFi Interest Accounts were unregistered securities — a first-of-its-kind action. It later froze withdrawals and filed for bankruptcy in November 2022 amid FTX exposure.
A purported diamond-backed cryptocurrency run by Jose Angel Aman as the latest stage of a multi-year diamond-investment Ponzi. The SEC said the linked schemes raised about $30M from 300+ investors; Aman was sentenced in 2020 to six years and ordered to pay ~$23M in restitution.
A Dallas-based operation that sold the Bitqy and BitqyM tokens. The SEC said founders Bruce Bise and Samuel Mendez defrauded over 13,000 investors in unregistered offerings; the DOJ said the venture raised ~$24M. Both pleaded guilty to tax evasion and received 50-month prison terms.
A 2018 ICO by Titanium Blockchain (TBIS), led by Michael Stollery, that raised ~$21M for its 'BAR' token using fabricated testimonials and bogus partnerships (e.g. the Federal Reserve, PayPal, Boeing). The SEC froze it; Stollery was sentenced to 51 months.
A 2017 Texas ICO that marketed itself as the world's 'first decentralized bank' on the AriseCoin token, with false claims of FDIC insurance and a Visa partnership and a bogus '$600M raised'. The SEC halted it; the real fraud was ~$4M. CEO Jared Rice got 5 years.
A 'decentralized' smart-contract investment platform the SEC called a 'textbook pyramid and Ponzi scheme', raising $300M+ (DOJ cited ~$340M). The SEC charged 11 people in 2022.
A BNB Chain token (2021) whose leaders, per the SEC/DOJ, falsely told investors the liquidity pool was 'locked' while retaining access and misappropriating assets worth more than $200M. CEO convicted in 2025.
A 2017 ICO that sold the CTR token and, per the SEC, raised over $32M by touting nonexistent partnerships with Visa, Mastercard, and Bancorp. Co-founder Sohrab Sharma was sentenced to 8 years.
A ~$147M pyramid scheme (2013–2015) by U.S. Fine Investment Arts (USFIA) that sold 'Gem Coins' — a digital currency falsely claimed to be backed by billions in amber and gemstones from nonexistent mines. Founder Steve Chen pleaded guilty and was sentenced in 2021 to 10 years.
A Houston-based operation that the SEC says was a $300M Ponzi scheme targeting 40,000+ predominantly Latino investors with promises of 15–100% returns from crypto and forex trading. The SEC halted it in 2022 and later charged 17 network leaders; founder Mauricio Chavez pleaded guilty to wire fraud.
A multi-level-marketing 'crypto and forex' investment program that the SEC says raised more than $650M from over 200,000 investors (2019–2023), many in the Haitian-American community. The SEC charged founders Cynthia and Eddy Petion in 2024, alleging a fraudulent Ponzi/pyramid scheme.
Brazilian national who the SEC says created and controlled Trade Coin Club, a crypto MLM that raised ~82,000 BTC (~$295M) from 100,000+ investors as a Ponzi scheme. Charged civilly by the SEC (2022) and criminally; later extradited to the U.S.
Co-founder of NovaTech with his wife Cynthia Petion. The SEC alleges the couple operated NovaTech as a $650M crypto/forex Ponzi and pyramid scheme. Charged civilly by the SEC in 2024.
Co-founder and self-described CEO ('Reverend CEO') of NovaTech. The SEC alleges she and her husband ran NovaTech as a $650M crypto/forex Ponzi and pyramid scheme and siphoned millions for themselves. Charged civilly by the SEC in 2024.
Australian co-founder of HyperFund/HyperVerse. Indicted by the U.S. DOJ in January 2024 over a scheme the DOJ valued at $1.89B and the SEC at over $1.7B.
A multi-level-marketing firm led by Ramil Ventura Palafox that claimed AI-powered Bitcoin/forex trading with daily returns up to 3%. Per DOJ/SEC it was a Ponzi: 90,000+ investors put in $201M+; net losses ~$62.7M. Palafox was sentenced in 2026 to 20 years.
A 2016–2018 MLM scheme that the SEC says raised 82,000+ BTC (~$295M at the time) from 100,000+ investors on the false promise of a trading 'bot'. The SEC charged founder Douver Braga and promoters; Braga was extradited to the U.S. and faces criminal charges.
A crypto 'membership' scheme (also HyperVerse/HyperNation) promising daily passive rewards from non-existent mining. The SEC cited $1.7B raised; the DOJ described a $1.89B fraud.
The algorithmic stablecoin TerraUSD (UST) lost its dollar peg in May 2022 and, with its sister token LUNA, collapsed. The SEC and DOJ cited about $40 billion in investor losses; co-founder Do Kwon was sentenced to 15 years.