Three Pennsylvanian crypto firms are currently on the verge of being busted by the U.S Security and Exchange Commission (SEC). The regulators already are processing freezing assets of these Pennsylvania crypto firms over claims that these firms have scammed investors of several million dollars.
The regulators who are already processing a court order to freeze the crypto firms account also are working to halt operations of the Pennsylvanian crypto firms and an order prohibiting the destruction of documents.
Background into Pennsylvanian crypto firms scam
SEC is accusing the crypto firms of duping investors of tens of million dollars and filed a complaint against brothers Sean Hvizdzak and Shane Hvizdzak, and their associated businesses, Hvizdzak Capital Management, High Street Capital, and High Street Capital Partners.
The brothers, who were charged according to the regulators, deceived investors to staking their money by misrepresenting facts about their businesses’ performance, and regulatory status. Furthermore, the brothers presented fake statements of accounts and forged audit documents to their investors.
SEC’s continued battle against crypto scam
In SEC’s complaint, they claimed that the Pennsylvanian crypto firms also deceived investors with claims that they made 100.97 percent and 92.90 percent profit in Q3 and Q4 last year when in reality, they made losses. SEC claims that some of the invested funds were also diverted to personal accounts and crypto wallets instead of digital asset investments.
Co-Chief of the SEC’s Asset Management Unit, Adams S. Aderton, warned that investors should be skeptical of claims that are too sweet to be true as portrayed by brothers of the firms they were in charge of.
This is not the first time SEC would be charging crypto assets firms. It points to the regulator’s continuous crackdown on crypto and its investors.
Ever since when the crypto world began to gain traction, several crypto firms have risen to capitalize on interest in the space.