The SEC has charged fraudsters with running a $60 million crypto Ponzi scheme.
They promised high returns, misusing investor funds for personal luxury purchases.
The Securities and Exchange Commission (SEC) has taken swift
action against two brothers accused of orchestrating a $60 million
cryptocurrency Ponzi scheme that defrauded over 80 investors in the US.
SEC Charges Brothers in $60 Million Crypto Ponzi Scheme
Jonathan Adam and Tanner Adam, along with their respective
companies GCZ Global LLC and Triten Financial Group LLC, are at the center of
the SEC's newest emergency asset freeze. The regulatory body alleges that the
brothers operated a sophisticated fraud scheme from January 2023 to June 2024,
promising investors monthly returns of up to 13.5% through a non-existent
crypto bot.
According to the SEC's
complaint, the Adam brothers claimed to have developed a proprietary trading
tool capable of identifying arbitrage opportunities in cryptocurrency markets.
They allegedly told investors their funds would be utilized in a lending pool
to facilitate “flash loans” for these arbitrage trades, assuring them
that their investments were safe barring a global market collapse.
“As we allege, the Adam brothers promised their investors
high returns on a crypto investment that did not exist, and then used investor
funds to make Ponzi-like payments and to purchase designer goods, recreational
vehicles, and million-dollar homes,” said Justin C. Jeffries, Associate
Director of Enforcement in the SEC’s Atlanta Regional Office.
Tanner Adam allegedly used the money to pay off a $30
million Miami condominium, while Jonathan Adam reportedly spent at least
$480,000 on various vehicles and recreational equipment. SEC also claims that
Jonathan Adam misrepresented his background to gain investor trust, failing to
disclose three prior convictions for securities fraud.
The complaint, filed in the US District Court for the
Northern District of Georgia, charges the Adam brothers and their companies
with violating antifraud provisions of federal securities laws. The SEC is
pursuing permanent injunctions, disgorgement of ill-gotten gains with
prejudgment interest, and civil penalties.
Not the First, Not the Last
The SEC's actions in recent years demonstrate that the
cryptocurrency market is a tempting target for potentially fraudulent trading
schemes. As Bitcoin's price rises and adoption grows, more retail investors are
eager to profit from cryptocurrencies. Unfortunately, these individuals are
increasingly falling victim to scammers.
Earlier this year, the SEC uncovered a crypto Ponzi scheme
called HyperFund that allegedly raised up to $1.89 billion from investors. The
agency brought civil and criminal charges against its founder, Xue Lee, for
claiming to offer “guaranteed high returns” from supposed crypto
asset mining operations and partnerships with Fortune 500 companies.
In mid-August, the Commission imposed a $650 million fine on
NovaTech for fraud, further eroding investor confidence in the crypto market.
NovaTech exploited victims' religious faith through social media, Telegram, and
WhatsApp messages, often in Haitian Creole. The scheme's leader, Cynthia
Petion, branded herself as “Reverend CEO” and claimed NovaTech was
“God's vision.”
Even more concerning, a July study by Cyvers reveals that
only 24% of stolen cryptocurrencies are returned to victims. Three out of four
crypto thieves and fraudsters typically escape punishment, having amassed over
$1 billion in the first half of the year alone.
The Securities and Exchange Commission (SEC) has taken swift
action against two brothers accused of orchestrating a $60 million
cryptocurrency Ponzi scheme that defrauded over 80 investors in the US.
SEC Charges Brothers in $60 Million Crypto Ponzi Scheme
Jonathan Adam and Tanner Adam, along with their respective
companies GCZ Global LLC and Triten Financial Group LLC, are at the center of
the SEC's newest emergency asset freeze. The regulatory body alleges that the
brothers operated a sophisticated fraud scheme from January 2023 to June 2024,
promising investors monthly returns of up to 13.5% through a non-existent
crypto bot.
According to the SEC's
complaint, the Adam brothers claimed to have developed a proprietary trading
tool capable of identifying arbitrage opportunities in cryptocurrency markets.
They allegedly told investors their funds would be utilized in a lending pool
to facilitate “flash loans” for these arbitrage trades, assuring them
that their investments were safe barring a global market collapse.
“As we allege, the Adam brothers promised their investors
high returns on a crypto investment that did not exist, and then used investor
funds to make Ponzi-like payments and to purchase designer goods, recreational
vehicles, and million-dollar homes,” said Justin C. Jeffries, Associate
Director of Enforcement in the SEC’s Atlanta Regional Office.
Tanner Adam allegedly used the money to pay off a $30
million Miami condominium, while Jonathan Adam reportedly spent at least
$480,000 on various vehicles and recreational equipment. SEC also claims that
Jonathan Adam misrepresented his background to gain investor trust, failing to
disclose three prior convictions for securities fraud.
The complaint, filed in the US District Court for the
Northern District of Georgia, charges the Adam brothers and their companies
with violating antifraud provisions of federal securities laws. The SEC is
pursuing permanent injunctions, disgorgement of ill-gotten gains with
prejudgment interest, and civil penalties.
Not the First, Not the Last
The SEC's actions in recent years demonstrate that the
cryptocurrency market is a tempting target for potentially fraudulent trading
schemes. As Bitcoin's price rises and adoption grows, more retail investors are
eager to profit from cryptocurrencies. Unfortunately, these individuals are
increasingly falling victim to scammers.
Earlier this year, the SEC uncovered a crypto Ponzi scheme
called HyperFund that allegedly raised up to $1.89 billion from investors. The
agency brought civil and criminal charges against its founder, Xue Lee, for
claiming to offer “guaranteed high returns” from supposed crypto
asset mining operations and partnerships with Fortune 500 companies.
In mid-August, the Commission imposed a $650 million fine on
NovaTech for fraud, further eroding investor confidence in the crypto market.
NovaTech exploited victims' religious faith through social media, Telegram, and
WhatsApp messages, often in Haitian Creole. The scheme's leader, Cynthia
Petion, branded herself as “Reverend CEO” and claimed NovaTech was
“God's vision.”
Even more concerning, a July study by Cyvers reveals that
only 24% of stolen cryptocurrencies are returned to victims. Three out of four
crypto thieves and fraudsters typically escape punishment, having amassed over
$1 billion in the first half of the year alone.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
FTX Auditor Prager Metis to Pay $1.95 Million for Negligence
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
Transformation in the APAC Trading Landscape and Beyond | FMPS:24
As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
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Don't miss out on our latest videos, interviews, and event coverage.
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As the financial services industry experiences rapid and transformative changes, leading fintech experts and policymakers come together to discuss the present and future of retail trading and the evolving regulatory landscape. Join this insightful session for a forward-looking perspective on the trends, innovations, and trader needs that are shaping the future of offerings on a global scale.
Speakers:
Eric Blewitt, CEO, Investment Trends
Rhys Bollen, Senior Executive Leader, Digital Assets, Australian Securities and Investments Commission (ASIC)
Michael Bogoevski, Head of Institutional Sales, CMC Connect
Karin Setchell, General Manager, Product & Investing Solutions, CommSec
#fmps #fmps24 #fmevents #RetailTrading #FintechInnovation #FinancialRegulation #DigitalAssets #GlobalFinance
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
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Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24
In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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🐦 Twitter: https://twitter.com/F_M_events
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
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In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.
#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
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Ready to Scale? Regtech in Australia, A Global View | FMPS:24
Ready to Scale? Regtech in Australia, A Global View | FMPS:24
In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Don't miss out on our latest videos, interviews, and event coverage.
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In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.
Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.
Speakers:
Dickie Currer, National Lead, Tech Australia Advocates
Deborah Young, CEO, The RegTech Association
#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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Resilience in Trading: From Third Class To World Class | FMPS:24
Resilience in Trading: From Third Class To World Class | FMPS:24
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage.
Subscribe to our YouTube channel for more!
Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.
#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates.
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IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24
For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
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🐦 Twitter: https://twitter.com/F_M_events
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For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.
Speakers:
Melody Gao, Senior Lawyer, Sophie Grace
James Perry-Keene, Head of Strategic Partnerships, Pepperstone
Christopher Balanzategui, CEO, N3tworx
#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation
📣 Stay updated with the latest in finance and trading!
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