On June 19, the US Securities and Exchange Commission (SEC) took action to <a href="https://www.financemagnates.com/cryptocurrency/news/sec-moves-to-freeze-assets-of-three-crypto-investment-funds/" target="_blank" rel="noopener">freeze</a> the assets of three Pennsylvania-based crypto funds which according to it, have misused the millions of dollars from investors.
<h2>Complaint Against Hvizdzak Brothers And Associated Businesses</h2>
The SEC-registered complaints against Sean Hvizdzak and Shane Hvizdzak in a court and alleged both the brothers not only lied to the investors but also misused the funds they (investors) have invested in their businesses.

The agency even claimed that their associated businesses Hvizdzak Capital Management, High Street Capital, and High Street Capital Partners were also involved in this misdeed.

In its complaint against the two brothers, the SEC has mentioned that they have conned the investors as they lied about their business performance and raised millions of dollars from them. The SEC further claimed that Hvizdzak brothers did not stop there, they even released a fake financial statement and forged audit documents for their clients.
<h2>Millions Of Dollars By Investors Diverted </h2>
The fraud brothers also claimed that during the third and fourth quarter of 2019, the fund raised by their company was 100.77 percent and 92.90 percent. But the fact was that in that same time period, their company lost the money.

The SEC stated that millions of dollars invested in the digital investment fund never reached its destination because the brothers changed its destination from funds to their personal accounts at banks and crypto exchanges.

Recently, the Co-Chief of the SEC’s Asset Management Unit, Adam S. Aderton, has said, “As alleged in our complaint, the Hvizdzaks touted exceptionally, but false, performance to potential investors when offering their fund. Investors should be sceptical of claims that seem too good to be true”.

This was not the first time the SEC-registered a complaint against a fu.d managing crypto asset. Since the past couple of years, as the market started witnessing the growth of cryptocurrencies, it also noticed the emergence of many cryptos funds.

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Hvizdzak Brothers In Trouble, SEC Moves To Freeze Their Crypto Fund’s Assets

On June 19, the US SEC took action to freeze the assets of three Pennsylvania-based crypto funds which have misused investors' millions of dollars.

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

Hvizdzak Brothers In Trouble, SEC Moves To Freeze Their Crypto Fund’s Assets

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