The U.S. Security and Exchange Commission (SEC) is a watchdog for crypto investors and financial assets.
The SEC filed charges on May 11, 2023, against GA Investors and John Does 1-4.
The charges bordered on fraudulent sales and offerings of crypto assets and securities to the unsuspecting public through dozens of websites.
Events like this erode investors’ trust in the system leading to calls for more regulations to reduce the number of crypto scams.
SEC Charge GA-Investor.org For Fraud
Source: www.sec.gov
The U.S. Security and exchange commission charged GA Investors and John Does 1-4 for fraudulent offerings, including crypto mining pools.
These activities occurred across several websites as the SEC seek for an order that the erring website shut down immediately.
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According to the SEC’s complaint, these websites offered unrealistic returns, with some claiming returns up to 61.9% in 24 hours.
These investments covered various securities now labeled as fraudulent by the regulatory body.
Also, the SEC stated that some of these websites impersonated legitimate companies, including a registered broker-dealer.
The defenders convinced numerous investors to invest approximately $85,000 in the GA Investors fraud scheme.
The complaint stated that the investors offered guaranteed daily returns ranging from 2% to 4.5%.
Investors made direct crypto purchases from another trading platform and transferred these assets to a GA investor’s wallet address.
Schemers Refused To Pay Up
According to the complaint, some investors could make small withdrawals from their accounts.
However, when the investors tried to withdraw lump sums, the defendants froze the withdrawals and embezzled the funds.
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Consequently, the defendants’ charges border on the antifraud provisions of the Securities Act.
The SEC seeks a court order granting the regulatory body a temporary restraining order and immediate freezing of assets to limit the damage.
Also, the SEC and the Federal Bureau of Investigation (FBI) are some of the notable agencies that have issued investor alerts, warning against scam projects.
