The US SEC has kicked off 2023 on a positive note following several high-profile cases that it is currently tackling. According to a new update, the regulator has nabbed six individuals with ties to a company carrying out crypto-related scams. Aside from the six people arrested, the regulator also announced that two other companies were tied to the investment crime, which saw them rake in about $45,000 during the period they were active.
The criminals lied to investors about the business
The US SEC report alleges that the criminals using the companies as a front claimed false numbers while promising investors a massive return when they invested with them. The report said that the criminals said that they would use high-grade blockchain equipment which would enable each user to earn more than 500,000 times what they initially deposited into the company.
The SEC claimed that the six individuals, alongside the two companies, were actively involved in the scam, which saw them sell unregistered securities to the general public. Meanwhile, the regulator mentioned that one of the lead suspects in the case, Neil Chandran, also has another case to answer for his involvement in another fraudulent scheme. An executive of the US SEC claimed that while the criminals lied to investors to collect funds, they used it to make themselves rich. Most of the members spent the fund on purchasing several luxury items, including cars and boats.
US SEC plans to reclaim stolen funds
The US SEC is presently pursuing legal action against the criminals, which will see the regulator retain possession of the stolen funds. In addition, the regulator also wants the criminal to face several penalties and legal actions for their roles in the scam. The regulator said the criminals operated under the Coindeal banner to scam users from 2019 to 2022. Also, the US SEC noted that the group did not carry out any public sale or any token, nor did they distribute anything.
The criminals have been charged with several anti-fraud crimes, which they will answer for in the coming months. Some months ago, Chandran was apprehended by the authorities for his involvement in a separate offense. The report said that he and his accomplices lied to investors about developing a digital asset and a metaverse. Some of the items that the authorities seized were luxury cars, houses, and other things. Chadran will serve the full 20 years penalty if the court finds him guilty of the offenses.