US SEC accuses a San Diego investor of defrauding $3.5 million in a crypto mining scheme.

The US Securities and Exchange Commission (SEC) has charged Donald Blakstad, a San Diego investment fund owner, of running a fraudulent crypto mining scheme and scamming $3.5 million out of investors.

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According to the official filing, SEC has accused Donald G Blakstad of defrauding $3.5 million from investors of three separate firms. SEC also accused Blakstad of deploying elaborate tactics to lure in at least 14 victims with a promise of large returns on their investment.

 

SEC alleges Blakstad used investors’ funds at casinos, restaurants, and hotels.

According to the US SEC, the crypto mining operation headed by Donald Blakstad took in some $550,000 from five separate investors, and Blakstad told them that their capital would cover equipment costs but the SEC has alleged that Donald used half of those funds on himself in casinos, restaurants, and hotels. SEC also accused him of making payments to individuals who introduced him to investors.

 

Donald was charged for insider trading in July.

Previously, Donald G Blakstad was arrested and charged in July 2019, for running an insider-trading ring that made more than $6 million from illegal tips about Illumina Inc. He was charged with five counts of conspiracy, securities fraud and wire fraud. According to prosecutors, Blakstad passed the tips from Bustos to others for their benefit and to help him avoid detection.

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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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