- Five promoters of the famous BitConnect scam have been charged for their activities by the SEC
- The five BitConnect promoters have been charged with the sale of unlicensed securities
- BitConnect engaged in a $2 billion Ponzi scheme between 2016 and 2018
Five influencers who marketed the now defunct BitConnect Ponzi scheme have been hit with charges by the Securities and Exchange Commission (SEC) over three years after the platform collapsed. The five, all of whom used various social media platforms to promote the supposed lending platform between 2016 and 2018, have been on the hook for their roles in helping grow the $2 billion platform which shuttered in early 2018, with the SEC pushing for a return of all the money earned plus a fine.
BitConnect Scammers Face the Music
BitConnect was the best known cryptocurrency scam of the 2017 bull run, made famous by adverts and videos posted by the five accused – Trevon Brown (aka Trevon James), Craig Grant, Ryan Maasen, Michael Noble (aka Michael Crypto) and Joshua Jeppesen. BitConnect cemented its place in the meme hall of fame when Carlos Matos, who also earned a huge sum from the platform as a seller, celebrated his success in a unique way at a BitConnect conference in January 2018:
The SEC began investigating BitConnect and the five accused in 2018, alongside others who peddled the same snake oil, all of whom were soon in dialogue with federal agencies over the scam. This has resulted in the SEC alleging that the five “unlawfully sold unregistered digital asset securities by actively promoting the BitConnect lending program to retail investors.”
SEC Seeking Return of Funds and Fine
The SEC alleges that BitConnect was effectively a Ponzi scheme, with the five earning commission on every ‘loan’ they managed to sell, eventually recruiting a network of managers beneath them (like Matos) and skimming off the top of their sales. The SEC alleges that Brown obtained at least $480,000, Grant over $1.3 million, Maasen over $475,000, and Noble over $730,000 through referrals and other funds. Jeppesen allegedly obtained over $2.6 million from BitConnect through his activities as continental promoter.
The SEC is seeking the return of all funds earned by the promoters as well as a fine, suggesting that there may be some hope that those hoodwinked by the scam may be able to get some of their money back, although at this point the chances look slim.
