- Four of the six BitConnect promoters have agreed to settle with the SEC
- The four will pay back monies in excess of $4 million
- Two of the more famous BitConnect shillers have declined to settle and may fight the case
The Securities and Exchange Commission (SEC) is ready to settle with four BitConnect promoters who made millions of dollars from the Ponzi scheme in 2017. Manhattan judge John Koeltl said yesterday that he was close to signing off on judgements against four of the six indicted individuals, who were famous in the cryptocurrency world during the 2017 bull run for their parts in the scam, while two remain resolute and could fight the charges.
Early Promoters Made Fortunes From BitConnect
BitConnect was a UK-based cryptocurrency lending program that relied on investments from new participants in order to continue its operation. Those promoters who got in early, such as the six defendants, were rewarded handsomely, with one earning over $3 million from the enterprise, but when BitConnect collapsed in January 2018 following cease and desist orders from Texas and North Carolina regulators, late investors were left losing their life savings.
Three and a half years later and the ramifications of the U.S. resident involved in the scheme, including partners who benefited financially, have come home to roost. According to court filings, Joshua Jeppesen will have to pay at least $3 million back, his partner Laura Mascola will have to pay back the $576,000 given to her by Jeppeson, Ryan Maasen will have to pay $526,000, while the amount to be paid back by Michael Noble is yet to be determined.
Two Scammers Fight On
Two of the most famous BitConnect shillers have continued to fight their corner however. Having seemingly got very attached to their money, Craig Grant and Trevon Brown (aka Trevon James) have rejected the opportunity to settle amicably with the SEC and may instead take the action to court.
Given that they have represented themselves up to this point, this may end up being one of the shortest court cases in living memory.