SEC Charges Creators Of Alleged $45,000,000 Crypto Scheme That Promised 500,000X Returns

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The United States Securities and Exchange Commission (SEC) accuses the team behind the CoinDeal scheme of allegedly defrauding tens of thousands of investors.

The SEC has filed a lawsuit against Neil Chandran, Garry Davidson, Michael Glaspie, Amy Mossel, Linda Knott, AEO Publishing Inc, Banner Co-Op, Inc and BannersGo, LLC for their involvement in the alleged fraudulent scheme which netted more than 45 millions of dollars. by selling unregistered securities to tens of thousands of investors worldwide.

According to the SEC, the team claimed that investors could receive huge returns after selling blockchain technology called CoinDeal for trillions of dollars to a group of deep-pocketed buyers.

But no CoinDeal sale ever took place and investors saw no return on their initial investment, according to the complaint. Additionally, Chandran reportedly used the investors’ money to purchase cars, real estate, and a boat.

Says Daniel Gregus, director of the SEC’s regional office in Chicago,

We allege that the defendants falsely claimed access to valuable blockchain technology and that the impending sale of the technology would generate over 500,000x returns for investors.

As alleged in our complaint, in reality it was all an elaborate scheme in which the defendants enriched themselves while defrauding tens of thousands of retail investors.

Chandran had previously been indicted in June 2022 for his involvement in CoinDeal’s activities by the US Department of Justice for three counts of wire fraud and two counts of monetary transaction in illegal products, according to the SEC.

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