SEC Probes Into $45M Fraud of a “Lucrative Blockchain Technology” Scheme
The Securities and Exchange Commission is seeking out individuals who allegedly engaged in a fraud scheme that robbed investors of tens of thousands of dollars. These fraudsters duped investors into investing their money in a phony “blockchain technology” that promised huge profits.
Supposed “Blockchain Technology”
The SEC has charged Neil Chandran and other culprits with engaging in a fraud scheme to drain funds from investors globally. Their fake agenda characterized persuading these investors about their plans to secure a blockchain technology that would generate significant profits for them.
Chandran has a history of participating in fraud schemes like this one and has been detained since last year for committing a crime similar to this.
He owns multiple firms and has over $45 million in fraud quests as a result of his fraudulent deeds. He was also aided by rogue actors who claimed to have this golden blockchain technology called CoinDeal that would roll in funds once it was secured; however, it turned out to be a fraud.
Investigation Still Ongoing
The SEC uncovered more of his accomplices and accused them of assisting and supporting Chandran in perpetuating this fraud operation, hence, violating US securities regulations.
In a statement, the SEC stated that these individuals falsely claimed to have access to a special blockchain technology, which they promised would bring in thousands of dollars for investors once secured.
These dishonest individuals took funds from investors that were supposed to safeguard this blockchain technology to buy vehicles, real estate, and other luxurious items.
These supposed CoinDeal is the name of a crypto currency exchange situated in the United States, and there is no relationship between this exchange and the aforementioned blockchain technology.
Companies such as BannersGo, LLC and a few others were uncovered to have ties to these schemes, getting funds and payments from these gullible investors.
Affected investors complained for months on various forums about these scam schemes draining their funds; they dubbed this scheme “Mike G,” after the perpetrator’s nickname for their investors.
The SEC is presently investigating this case in order to locate any remaining funds. The SEC also intends to fine those engaged in this case as well as any other firm or persons associated with this case in any manner.
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