SEC Indicts California Man for $3.6 Million Crypto Fraud

The US Securities and Exchange Commission (SEC) has busted another allegedly fraudulent cryptocurrency scheme as it recently charged Ryan Ginster for conducting two unregistered and fraudulent securities offerings. He raised more than $3.6 million in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term from retail investors, the agency announced on Friday.

According to the regulatory complaint, the California resident raised the proceeds between 2018 and 2021 through two online platforms, MyMicroProfits.com and Social Profimatic. He promised astronomical returns to the investors, claiming he would invest the funds in ‘cryptocurrency trading and advertising arbitrage’.

However, he deceived investors about the utilization of the raised funds and misappropriated almost $1 million of the raised funds for paying personal expenses, including tax Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term, housing expenses and credit card bills.

The commission charged Ginster for violating the anti-fraud and registration provisions and is now seeking permanent injunctions, disgorgement with prejudgment interest and civil penalties.

“Defendant Ryan Ginster allegedly engaged in a fraudulent scheme raising millions in cryptocurrency using online investment programs and then converted the cryptocurrency for his own benefit,” said Michele Wein Layne, Regional Director of the SEC’s Los Angeles Regional Office.

“Individuals who hide behind the anonymity of cryptocurrency transactions to defraud investors should expect that the SEC will trace their illegal activity and hold them accountable for their actions.”

Investment Frauds Are Rampant

Meanwhile, the SEC actively continued to bust the fraudulent investment schemes that are duping investors out of millions of dollars. Most recently, the commission filed for an enforcement action against Mirror Protocol, a cryptocurrency developer company, for the alleged violation of the federal securities laws.

Last month, the SEC and the CFTC separately indicted SwapStar and its operator for fraudulent solicitation and fund misappropriation that mostly operated as a Ponzi scheme.