The Securities and Exchange Commission (SEC) <a href="https://www.sec.gov/news/press-release/2022-201" target="_blank" rel="nofollow noopener">announced</a> on Friday that it accused the founders of a multi-level marketing agency, Trade Coin Club, of running a $295 million cryptocurrency Ponzi scheme.
<h2>SEC Charges Trade Coin Club Founder</h2>
The Trade Coin Club, which acquired over 80,000 <a href="https://www.cryptoknowmics.com/news/microstrategy-ceo-restated-long-term-bitcoin-position-in-q3-results">bitcoin (BTC)</a> from over 100,000 investors, is where  Joff Paradise, Douver Torres Braga, Keleionalani Akana Taylor, and Jonathan Tetreault are being charged by the SEC. The company's founder, Braga, is accused of misleading investors by claiming they could employ a bot to produce daily profits of 0.35% on their <a href="https://www.cryptoknowmics.com/news/cryptocurrency-fund-of-funds-protocol-ventures-is-closing">cryptocurrency</a>. However, he used this money to pay Paradise, Taylor, Tetreault, and himself.

The head of the Crypto Assets and Cyber Unit of the SEC, David Hirsch, released a statement that the company claimed Braga exploited Trade Coin Club to take hundreds of millions from individuals worldwide. They profit by taking advantage of their enthusiasm for investing in virtual assets.
<h2>Complaints By SEC</h2>
According to the SEC's petition, Braga broke the federal securities regulations' antifraud and securities licensing sections, Paradise did as well as the antifraud, securities registration, and broker-dealer registration provisions, and Taylor did as well. The lawsuit claims forfeiture, civil fines, and legal remedies.

In a second complaint, the SEC charged Jonathan Tetreault with breaking the federal securities laws' requirements for broker-dealer certification and security registration. Tetreault consented to resolve the SEC's complaints without acknowledging or disputing the claims. The court must approve the deal.
<h2>Crypto-Related Ponzi Schemes</h2>
The SEC and other regulatory agencies are not unfamiliar with cryptocurrency-related Ponzi schemes. In August, the SEC sued 11 people connected to Forsage, an Ethereum dapp that defrauded investors of over $300 million. The <a href="https://www.cryptoknowmics.com/news/paradigm-seeks-cftc-to-serve-ooki-daos-members">Commodity Futures Trading Commission (CFTC)</a> filed charges against two men in May for defrauding $44 million in cryptocurrency investors using YouTube videos by deception.

SEC Charges Trade Coin Club Founders of Running $295M Ponzi Scheme

SEC announced that it accused the founders of a multi-level marketing agency, Trade Coin Club of running a $295 million cryptocurrency Ponzi scheme.

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SEC Charges Trade Coin Club Founders of Running $295M Ponzi Scheme

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