• Days
  • Hours
  • Mins
  • Secs
  • Sun, 15 Sep 2019, 07:31 AM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

California resident sued for alleged $26M crypto Ponzi scheme

Fri, 24 May 2019, 07:25 am UTC

The U.S. Securities and Exchange Commission (SEC) is suing a California resident for allegedly running a multimillion-dollar cryptocurrency Ponzi scheme.

The Commission has filed a civil injunctive action on Wednesday against Daniel Pacheco for selling unregistered securities through IPro Solutions LLC and IPro Network LLC. between January 2017 and March 2018.

We allege that Pacheco hid an old fraud under the guise of cutting-edge technology,” Michele Wein Layne, Director of the SEC’s Los Angeles Regional Office, said.

In its press release, the SEC revealed that the companies raised over $26 million from investors using a point system, which can theoretically be converted into a digital asset called PRO Currency.

Moreover, investors in the project were told that they could earn extra convertible points or cash commission by recruiting new members to the network.

He enticed investors by offering them the opportunity to speculate in cryptocurrency, when in fact he was simply operating a pyramid scheme,” Layne stated.

Pacheco allegedly used the funds for a shopping spree, buying a $2.5 million house and a Rolls Royce car.

The SEC has also recently halted another cryptocurrency Ponzi scheme estimated to worth $30 million. It obtained a court order against Argyle Coin, LLC, and its principal Jose Angel Aman for luring investors and misusing their funds for his alleged diamond resale outfit.

Just last month, SEC has published regulatory guidance to help token issuers if their cryptocurrencies are following federal securities law. The regulation provided a framework to know if a certain digital asset qualifies as one particular security type, which is an “investment contract.”

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $10,357.80 (+0.25%)
  • Ethereum (ETH) $188.52 (+4.32%)
  • XRP (XRP) $0.263400 (+3.10%)
  • Bitcoin Cash (BCH) $306.39 (+2.72%)
  • Litecoin (LTC) $70.86 (+2.98%)
  • Bitcoin (BTC) $10,357.80 (+0.25%)
Sep 13, 2019 (Friday)
11:12
Libra Association head confident about crypto launch in H2 2020
10:42
Blockchain industry welcomes Mastercard-R3 collaboration, but skeptical about the future of private networks
09:52
tZERO to bring blockchain to film financing via new partnership
09:11
France mulls blocking Facebook's Libra project on European soil as FINMA chief weighs pros and cons of the cryptocurrency
07:26
Thailand's PTT, Energy Web Foundation to develop blockchain renewable energy marketplace
07:17
Russia’s Alfa-Bank launches liquidity management service on Waves Blockchain
06:40
Zelle co-founder Mike Kennedy replaces Adam Ludwin as CEO of Interstellar
06:34
Crypto Technicals: XMR/USD recovery lacks traction, price action capped below 21-EMA (75.86)
05:56
Crypto Technicals: BTC/USD trades range-bound, no clear directional bias
05:03
PundiX to launch a fully blockchain-powered phone Blok on Blok (BOB)
04:54
Cryptokitties maker Dapper Labs secures $11.2M to develop blockchain Flow, scores deals from Warner Music, Ubisoft
04:48
Crypto exchange Huobi likely to attempt backdoor IPO in Hong Kong
03:49
Binance's NYDFS-approved stablecoin BUSD is now live on Paxos, to be listed on Binance next week
03:33
Deutsche Telekom's T-Labs launches blockchain e-mobility pilot 'Xride'
Sep 12, 2019 (Thursday)
12:24
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
12:13
Binance Futures to go live on September 13
11:43
Santander issues $20M bond using Ethereum blockchain
08:55
Binance US to open user registration next week
07:38
Marshall Islands to launch a pre-sale for its blockchain-based national cryptocurrency
06:38
United Kingdom leads with most number of registered cryptocurrency exchanges: Study
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft