The SEC continues to crump down on fraudulence around the crypto industry. Since they emerged some fraudsters have used them to steal or mislead investors to enrich themselves. The U.S. Securities and Exchange Commission (SEC) strives to ensure there is order and the industry is a free market and no individuals manipulate or steal from investors.
Since the launch of Bitcoin, there have been thousands of copycats. Most are built to be a better version of Bitcoin, while others try to build upon it. One that was touted as a “new and improved version of bitcoin”. The AML BitCoin was launched by NAC Foundation, the organization was led by Chief Executive Officer Marcus Andrade, and political lobbyist Jack Abramoff.
The AML BitCoin was marketed as a superior version of the original bitcoin, with anti-money laundering, anti-terrorism, and theft-resistant technology built into the coin on NAC’s own “privately regulated public blockchain.”
The SEC Cleanup
The SEC has now charged the issuer with misleading investors as the protocol none of this. Chief of the SEC Enforcement Division’s Cyber Unit, Kristina Littman;
“We allege that these defendants repeatedly misled investors into funding non-existent technology, falsely claiming that the technology would make digital asset transactions more secure,”
The issuer is said to have raised at least $5.6 million from more than 2,400 investors by selling tokens. Of this, he is further charged with using at least $1.1 million of this for personal use.
“Abramoff has agreed to a settlement imposing permanent and conduct-based injunctions, officer-and-director, industry, and penny stock bars, disgorgement of the $50,000 in commissions he received, plus prejudgment interest of $5,501, and reserves the issue of civil penalties for further determination by the court upon motion of the SEC. The settlement is subject to court approval.”
Fraud in the crypto space is unwanted and frankly an adoption killer. It leads to investor fear when investing in emerging projects, as such the crypto community should support regulators. but more importantly, should learn to identify false projects before investing.
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