BitConnect promoters agree to pay $3.7 million and 190 BTC in a settlement with the SEC.

The U.S. Securities and Exchange Commission (SEC) has entered a settlement with two alleged promoters of the multi-billion dollar BTC scam BitConnect.

The U.S. SEC has entered a settlement with two alleged promoters of the multi-billion dollar BTC scam BitConnect. BitConnect agreed to pay over $3.7 million in disgorgement and prejudgment interest. They are also to forfeit 190 BTC to the regulator, worth $8.9 million at current prices. BitConnect was one of the biggest successes in the world of cryptocurrencies after its ICO. 

 

Southern District of New York entered a judgement against BitConnect promoters. 

In its press release, the SEC revealed that the Southern District of New York had entered a judgment on August 13 against Michael Noble, also known as Michael Crypto, and his partner in crime, Joshua Jeppesen, for their involvement with BitConnect. The court also entered a final judgment against Laura Mascola as a relief defendant. The SEC had charged Noble in connection with allegedly promoting BitConnect and selling securities in its lending program from June 2017 to January 2018. The financial watchdog claimed that Noble sold the securities without registering with the commission and without being registered as a broker-dealer. 

 

Jeppesen was accused of serving as a liaison between BitConnect and promoters. 

Jeppesen was accused of serving as a link between BitConnect and promoters and represented the company at events, while Mascola allegedly received certain proceeds from Jeppesen’s BitConnect activities. BitConnect was once one of the biggest successes in the crypto market. After an ICO in December 2016, the project saw its native token shoot up to $400 in 2017, with its market cap hitting $2.6 billion at one point. However, several had warned investors against investing in what they described as a Ponzi scheme. The project was shut down in early 2018. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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