The U.S. Securities and Exchange Commission (SEC) is charging the team behind the CoinDeal scheme for allegedly defrauding tens of thousands of investors.
The SEC filed a complaint against Neil Chandran, Garry Davidson, Michael Glaspie, Amy Mossel, Linda Knott, AEO Publishing Inc, Banner Co-Op, Inc, and BannersGo, LLC for their involvement in the alleged fraudulent scheme that raised more than $45 million by selling unregistered securities to tens of thousands of investors around the globe.
Per the SEC, the team allegedly claimed that the investors could receive huge returns after they sell the blockchain technology called CoinDeal for trillions of dollars to a group of deep-pocketed buyers.
But no CoinDeal sale ever took place and investors saw no returns on their initial investment, according to the complaint. Additionally, Chandran allegedly used investor money to buy cars, real estate and a boat.
Says Daniel Gregus, Director of the SEC’s Chicago Regional Office,
“We allege the defendants falsely claimed access to valuable blockchain technology and that the imminent sale of the technology would generate investment returns of more than 500,000 times for investors.
As alleged in our complaint, in reality, this was all just an elaborate scheme where the defendants enriched themselves while defrauding tens of thousands of retail investors.”
Chandran was previously indicted in June 2022 for his involvement in CoinDeal activities by the U.S. Department of Justice on three counts of wire fraud and two counts of monetary transaction in unlawful proceeds, per the SEC.
Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inboxCheck Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Zalevska Alona UA
Generated Image: Midjourney
