US Securities and Exchange Commission (SEC) has charged two brothers for allegedly executing a $60 Million crypto Ponzi scheme.
The SEC filed a complaint on Monday in the United States District Court for the Northern District of Georgia, Atlanta which claims Jonathan Adam and his brother, Tanner Adam, lured in over 80 people by claiming to execute a (non-existing) crypto bot that could bring investors 13.5% monthly returns.
SEC alleges that from January 2023 to June 2024, the brothers claimed that their trading bot identified arbitrage trading opportunities and could buy as well as sell assets to tap into tiny profits by considering the differences across the trading platforms. The brothers promised investors that their funds would be moved to the lending pool to fund flash loans and complete trades.
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However, Justin Jeffries, Associate Director of Enforcement in the SEC’s Atlanta Regional Office, busted the claim and found the trading scheme to be fake and that the trading bot never existed.
The Adam brothers were instead misspending $53.9 Million of the $61.5 Million raised. Even though the investors managed to get back some of their money, the duo spent most of the money to fund lavish lifestyles, including purchasing cars and trucks and constructing a $30 million condominium.
SEC has obtained emergency asset freezes for Jonathan and Tanner Adams companies GCZ Global, LLC, and Triten Financial Group LLC and has charged the brothers for violating the antifraud provisions of the federal securities laws.
Also Read: July Witnessed 16 Crypto Hacks Resulting in $266M Losses
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