SEC sues five people for BitConnect lending program

A civil suit was filed from the Securities and Exchange Commission (SEC) against five people allegedly involved in promoting BitConnect's "loan program". BitConnect closed its main lending platforms in 2018 following regulatory warnings and fraud claims. SEC's Civil Litigation In a press release posted on the SEC website today, the organization claims that individuals raised and supported more than $ 2 billion from private investors in an unregistered digital asset offering. The complaint alleged that a network of supporters, four out of five defendants, offered and sold securities as part of the platform's lending program, without registered broker-sellers and without registering the securities with the SEC. This includes a "reference" style video flurry in the press release, which is uploaded to YouTube to justify the fundamentals behind the program. The complaint states that the initiators receive commissions based on their success in fundraising. The fifth person named in the complaint is accused of "helping and encouraging" the unregistered offer and sale as a liaison between BitConnect and organizers and as a company representative at events and conferences. “We claim that these defendants are actively promoting the BitConnect lending program to retail investors, illegally selling unrecorded digital assets,” New York Deputy Regional Director Lara Shalov Mehraban said in a press release. We will try to count those who make a profit illegally by taking advantage of the public interest in digital assets. Related reading | Crypto YouTuber establishes parallels between SafeMoon and BitConnect History of BitConnect The platform was first launched in parallel with BitConnect Coin (BCC) in 2016; The company used a so-called 'trading bot' and provided users with daily calculated interest on high-yielding returns The following year, British government agencies Bi

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