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SEC Charges Two Companies in $130 Million Crypto Trading Scheme
The Securities and Exchange Commission (SEC) has charged two foreign-operated, Colorado-incorporated companies with running a crypto investment fraud that raised over $130 million from tens of thousands of retail investors. The companies induced participants in more than 40 states and several U.S. territories to join a 'wealth-sharing program' with false claims of being a licensed investment adviser and a secure crypto trading platform. The SEC alleges the companies submitted false Form ADV and Form D filings to the SEC, which were shared with investors as evidence of their legitimacy. The complaint alleges the companies used fake certificates, social media, encrypted messaging channels, and mobile apps to engage investors, and displayed periodic payments while misappropriating remaining funds.