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- Crypto scam involving Bitconnect has reached to a judgement
- The final judgment charged more than $12 million for promoting such schemes
- The defendants will now have to pay 190 BTC along with $3.5 million worth of cash
- Jeppensen is responsible for the bulk of the settlement
- Regulators are yet to finalize the amount to be paid by Michael
- Michael and Jeppesen cannot participate in future crypto offerings anyhow as per the judgment
Crypto scam has become another concerning topic in the cryptosphere. Digital assets have gained mainstream attention globally. With enough demand and potential, several new projects are emerging to make our life more independent and easy. However, the soaring number of projects has become an opportunity for several scammers. Likewise with a loss of more than $250 million Bitconnect shut its operations in 2018. Recently, the United States Securities and Exchange Commission (SEC) has secured $12 million from the promoters of the Bitconnect scam.
Bitconnect scam was the biggest of its kind
Bitconnect was established before the 2017 crypto market rally. US SEC allegedly accused that the platform used a network of promoters to sell $2 billion worth of unregistered securities. Indeed, the platform showed signs of a Ponzi scheme and shut its operations before 2018.
In the May complaint of the crypto scam, the US regulator accused that Jeppesen received compensation worth over $2.6 million from the scam. Moreover, he transferred more than $500k of the total amount to his fiance Mascola. On the other hand, Michael Crypto is accused of receiving compensation of at least $480k.
US SEC wins $12mn against crypto scam
The United States SEC has reached a judgment on Thursday against Michael Noble who was behind the crypto scam. Moreover, it is also revealed that the regulatory agency has legislated a final judgment against Joshua Jeppesen and Laura Mascola who were also involved in the Bitconnect Ponzi scheme promotion. Indeed, the final judgment secured more than $12 million for promoting such schemes. Notably, the defendants will now have to pay 190 BTC along with $3.5 million worth of cash.
Jeppesen is responsible for the bulk
According to the ruling, Jeppesen, who is also one of the defendants, is responsible for the bulk of the settlement. The scammer will have to pay the 190 Bitcoins with approximately $3.04 million in cash. Moreover, he will have to provide the information and access to the BTC wallet with an additional penalty of $150k.
On the other hand, Mascola has been charged to pay $567k in disgorgement and prejudgment interest. However, the regulators are yet to finalize the amount to be paid by Michael who is also known as Michael Crypto.
Notably, both Michael and Jeppesen cannot participate in future crypto offerings anyhow as per the judgment.
