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.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 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
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 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!