SEC Charges Unregistered Crypto Assets Advisor and Owner With Fraud

Posted on September 30th, 2022 at 11:09 AM
SEC Charges Unregistered Crypto Assets Advisor and Owner With Fraud

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has charged Chicago Crypto Capital along with its owner, Brian Amoah, and two former salesman, Darcas Young and Elbert Elliot, for allegedly defrauding investors in connection with an unregistered offering of crypto asset securities.

Amoah, Young, and Elliot used their Chicago-based firm to conduct an unregistered offering of BXY tokens, according to the SEC. The SEC’s complaint alleged that the offering raised nearly $1.5 million from at least 100 investors between August 2018 and November 2019. The BXY offering was not a registered offering and failed to satisfy any exemption from registration, while none of the defendants were registered with the SEC.

The complaint further alleged that the defendants made materially false and misleading statements regarding the custody and delivery of BXY, the markup charged by the firm, the delivery of account statements, and their own personal investments in BXY. Some of the investors never received their BXY tokens, while each investor paid an undisclosed markup on their BXY tokens, according to the SEC.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, sec

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