On Wednesday, the U.S. Securities and Exchange Commission (SEC) <a href="https://www.sec.gov/litigation/litreleases/2022/lr25506.htm" target="_blank" rel="nofollow noopener">filed charges</a> against the Chicago-based cryptocurrency investment firm, Chicago Crypto Capital (CCC), and three of its employees. The charges relate to the alleged sale of $1.5 million worth of unlisted cryptocurrencies. The SEC also informed about this lawsuit on its Twitter account.

https://twitter.com/SECGov/status/1570147877808218114

According to the lawsuit, Brian Amoah, the founder of Chicago Crypto Capital, together with salespeople Darcas Oliver Young and Elbert Elliott, reportedly sold BXY tokens to 100 investors, many of whom had no basic understanding of <a href="https://www.cryptoknowmics.com/news/3-ingenious-ways-to-make-money-from-cryptocurrencies/" target="_blank" rel="noopener">cryptocurrencies</a>, between August 2018 and September 2019. They deceived those investors about how they were managing the token.
<h2>BXY Tokens</h2>
The lawsuit stated that BXY is a token associated with the defunct cryptocurrency exchange, Beaxy. Beaxy pitched investors on a token, which it claimed could earn large profits, similar to the <a href="https://www.cryptoknowmics.com/news/what-are-initial-coin-offering-ico/" target="_blank" rel="noopener">initial coin offering</a> (ICO) period, to acquire funds and build a substantial user base. Additionally, it had a sale deal with CCC. The complaint claimed that CCC kept 3% of every 5% transaction.

The complaint also stated that the cryptocurrency investment firm offered BXY to new investors without disclosing the payments received by the business. Later, CCC failed to send BXY tokens to some of its customers.

In violation of U.S. securities law, the SEC charged the group with working as unauthorized brokers and fraudsters. It aims to prevent them from promoting cryptocurrency securities.
<h2>Sections By Securities And Exchange Commission</h2>
CCC, Amoah, Young, and Elliott must answer charges for breaking the Securities Act of 1933, the Securities Exchange Act of 1934, the Securities Act, and the Exchange Act, according to the SEC's complaint lodged in the U.S. District Court for the Northern District of Illinois. The SEC demands civil fines, pre-judgment interest on disgorgement, and injunctive relief. The SEC approved Young's settlement offer, in which he agreed to pay disgorgement and a civil penalty.

SEC Sues Chicago Crypto Capital, Employees Illegally Sell BXY Tokens

The complaint stated that Chicago Crypto Capital offered BXY Tokens to new investors without disclosing the payments received by the business.

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SEC Sues Chicago Crypto Capital, Employees Illegally Sell BXY Tokens

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