On August 20, the Securities and Exchange Commission announced two judgments in its ongoing case against BitConnect, a crypto lending platform that the SEC contends was a $2 billion unregistered securities offering.
The case began in May, targeting five of BitConnect’s alleged promoters. Today’s judgments include only two, Michael Noble and Joshua Jeppesen, whose fiancé Laura Mascola, is not accused of wrongdoing but will have to return funds that Jeppesen transferred to her.
Jeppesen himself was a liaison between BitConnect and promoters. Regulators have alleged that BitConnect itself is a Ponzi scheme, with the FBI issuing a call for victims early in 2019. None of today’s cases, however, feature criminal charges.
Per the final judgment, Jeppesen and Mascola are on the hook for paying $3.5 million and 190 bitcoin (worth $9.1 million) in disgorgement and prejudgment interest. As for Noble, the size of his fine remains undetermined.
The judgments have enjoined both Noble and Jeppesen against participating in digital asset offerings in the future.
The SEC’s investigation into BitConnect continues, as do its cases against the remaining executives.
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