US SEC accuses man of defrauding crypto investors in two digital asset offerings – Bitcoin News

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The United States Securities and Exchange Commission (SEC) has accused a Latvian citizen of defrauding investors in connection with two crypto offers. The fraudster “used false names, fictitious entities and fraudulent profiles to carry out his schemes and embezzled almost all of the investors’ funds that were raised.”

Two fraudulent crypto schemes

The SEC announced Thursday that it had “charged a Latvian citizen with defrauding hundreds of retail investors of at least $ 7 million through two separate offers of fraudulent digital asset securities.”

Noting that Ivars Auzins defrauded U.S. and foreign investors, the securities regulator explained:

Auzins allegedly used false names, fictitious entities and fraudulent profiles to carry out his schemes, and embezzled almost all of the investors’ funds that were raised.

Its first program ran from January to March 2018. “Auzins fraudulently offered and sold unregistered digital tokens as part of an ICO. [initial coin offering] of Denaro, a so-called multi-currency debit card platform, ”the SEC detailed.

The complaint alleges that “all claimed products or services offered were fictitious, including the relationship with the credit card issuer”, noting that “Auzins embezzled all income from the ICO”.

Its second program ran from April to July 2019. “Auzins fraudulently offered the unregistered securities of Innovamine, which allegedly offered a cloud mining program,” the SEC described, adding that it “hijacked the almost all of the funds raised as part of the offer “.

The securities regulator detailed:

As we claim, Auzins was engaged in a brazen scheme to defraud retail investors under the guise of profitable digital asset opportunities.

The Latvian citizen is accused of “violating the anti-fraud and registration provisions of the federal securities laws”. The SEC “seeks permanent injunctions, including injunctions based on conduct, restitution plus prejudgment interest, civil penalties, and an officer and director ban against it.”

Tags in this story crypto offers, defraud investors, fraud scheme, ICO, initial coin offering, SEC, crypto sec, crypto sec fraud, crypto sec, crypto sec, securities offerings

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