SEC Charges Team Behind Coindeal Crypto Scam That Promised 500,000x ROI – Regulation Bitcoin News

The US Securities and Exchange Commission (SEC) has charged the team behind Coindeal, a fraudulent $45 million crypto investment scheme. The regulator explained that the defendants falsely claimed that Coindeal would “generate investors a return on investment in excess of 500,000 times”.

SEC Takes Action Against Coindeal Crypto Scam

The US Securities and Exchange Commission (SEC) announced on Wednesday that it has charged the creator of crypto investment scheme Coindeal and seven others in connection with a $45 million fraud.

Describing Coindeal as a “brazen and far-reaching unregistered offering scam conducted between at least 2018 and 2022,” the securities regulator detailed:

Coindeal has raised more than $45 million by selling unregistered securities to tens of thousands of investors worldwide.

The SEC explained that creator Neil Chandran and promoters Garry Davidson, Michael Glaspie, Amy Mossel and Linda Knott “falsely claimed that investors could make extravagant returns by investing in a blockchain technology called Coindeal that would be sold for trillions of dollars to a group of high-profile and wealthy buyers.”

However, the regulator said the sale of Coindeal never took place and no distribution to investors was made. The defendants “collectively misappropriated millions of dollars in investment funds for personal use, and Chandran used the investment funds to purchase items such as cars, real estate and a boat,” the SEC wrote.

The securities watchdog also accused AEO Publishing Inc., Banner Co-Op Inc. and Bannersgo LLC for their involvement in a fraudulent crypto investment scheme.

Daniel Gregus, director of the SEC’s Chicago regional office, said:

We claim that the defendants falsely claimed that they had access to valuable blockchain technology and that the imminent sale of the technology would bring investors more than 500,000 in return on investment.

The director added, “As our lawsuit alleges, in reality it was all just an elaborate scheme in which the defendants enriched themselves while defrauding tens of thousands of small investors.”

In June last year, the US Department of Justice (DOJ) indicted Chandran on three counts of wire fraud and two counts of money laundering in illegal proceeds related to the Coindeal crypto fraud scheme.

What do you think about the SEC action against Coindeal? Let us know in the comments section below.

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.

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