The U.S. Securities and Exchange Commission (SEC) has indicted the team behind Coindeal, a $45 million fraudulent crypto investment scheme. The regulator explained that the defendants made false claims that Coindeal “will generate more than 500,000 times investment returns for investors.”
SEC Takes Action Against Coindeal Crypto Fraud
The U.S. Securities and Exchange Commission (SEC) announced Wednesday that it has indicted cryptocurrency investment scheme creator Coindeal and seven others in connection with a $45 million fraud.
Describing Coindeal as “a brazen and widespread unregistered offering fraud that took place between at least 2018 and 2022,” securities regulators detailed:
Coindeal … Raised over $45 million in unregistered securities sold to tens of thousands of investors worldwide.
The SEC believes creator Neil Chandran and promoters Gary Davidson, Michael Glaspie, Amy Mossel and Linda Knott will generate exorbitant profits for investors to invest in a blockchain technology called Coindeal. I explained that I had falsely claimed that I could. A prominent and wealthy buyer. ”
However, the regulator said there has never been a sale of Coindeal and no distribution to investors has taken place. Defendants “collectively misappropriated millions of dollars of investor funds for personal use, and Chandran used investor funds to purchase goods such as cars, real estate, and boats.” SEC writes.
Securities regulators have also indicted AEO Publishing Inc., Banner Co-Op Inc., and Bannersgo LLC. for involvement in fraudulent cryptocurrency investment schemes.
Daniel Gregas, Director of the SEC’s Chicago Regional Office, said:
Defendants falsely claim access to valuable blockchain technology, and claim that the technology’s imminent sale will generate investors more than 500,000 times their investment return.
The director said, “As alleged in our complaint, in reality, this all boils down to an elaborate scheme by the defendants to enrich themselves while defrauding tens of thousands of private investors.” was.”
Last June, the U.S. Department of Justice (DOJ) indicted Chandran for three wire frauds and two illegal financial transactions in connection with the Coindeal crypto-fraud scheme.
What are your thoughts on the SEC’s action against Coindeal? Let us know in the comments section below.
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