Before anyone decides to venture into trading crypto or any scheme associated with digital assets, analysts and experts have warned that they should carry out huge researches. Researchers into what or who is behind the schemes or investment that they are about to enter will do them a great deal and save them from future heartbreak.
Taking the case of Airbit Club into consideration, the United States Securities and Exchange Commission has sanctioned its latest promoter because the scheme was unregistered. According to the new statement from the Securities and Exchange Commission, it has taken another high-level promoter of the scheme into custody as it continues to round up the people behind the unregistered scheme.
Chairez used her social media to lure in investors
In the announcement that was made by the agency on Monday, the United States Securities and Exchange Commission said that the latest member that was indicted, Karina Chairez was arrested because of her level of involvement in the scheme. The Commission said that Chairez used her social media prowess to advertise the unregistered scheme, thereby bringing in investors into the fraudulent platform in the process. Also, the agency said she met with prospective investors using via social media and still attended in-person meetings.
The Commission also stated that the Chairez was involved in pulling massive amounts of cash for the fraudulent scheme without putting the amounts into records. The United States Securities and Exchange Commission also said that Chairez acted as the main head of the fraudulent operation and received hefty Commission for the sales of ArtBit Clubs securities. The Commission has said that amongst other things that it wants the proper authorities to slam on Chairez, it wants civil lawsuits, disgorgement, injunctive relief and prejudgement interest.
Authorities were already watching on the scheme
Airbit Club was said to have used various means including social media, to coerce investors to invest in several packages on their platform including returns for up to 300 days on each package. According to their statement at the time, Airbit Club said the several packages that were bought by each investor was used to purchase softwares that will be used to mine several digital assets. A look at Airbit Clubs modus operandi shows that an investor will open an account and purchase various subscription using fiat currency.
The volume, amount paid, and the estimated rewards vary according to the several packages on the platform. Just like every fraudulent platform, the initial investors on the platform got their rewards, one of the core reasons why they were able to confirm its legitimacy as at then. A look at the scheme from an expert point of view shows that it is fraudulent because of the several difficulties associated with mining digital assets.
Airbit Club was said to have targeted Latin speaking countries as they were able to lure them in using high-profit returns. Authorities were already locked in on this fraudulent scheme in recent years as a previous report, showed that the justice department arrested its founders, along with several promoters.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.
