SEC Charged CoinDeal Crypto Scheme Creator and Others for Fraud

SEC has charged the creator of CoinDeal Crypto Scheme, and seven others over US$ 45M fraud

The creator of the CoinDeal Crypto Scheme and seven others have been charged by US financial markets regulator SEC. They are accused of participating in a fraudulent investment scheme in which they raised more than US$ 45 million by selling unregistered securities to tens of thousands of investors, according to the US financial markets regulator Securities and Exchange Commission (SEC). 

As per the complaint filed by SEC in the US District Court for the Eastern District of Michigan, the concerned individuals or entities — Neil Chandran, Garry Davidson, Michael Glaspie, Amy Mossel, Linda Knott, AEO Publishing Inc, Banner Co-Op, Inc, and BannersGo, LLC — maliciously claimed that investors could generate "extravagant returns" by investing in a blockchain technology called CoinDeal that would be sold for trillions of dollars to a group of noteworthy and wealthy buyers. It cannot be denied that crypto market involves risks and volatility but cryptocurrencies has attracted traders in recent years as investors are always in rush to make quick profits. SEC, the US financial market regulator said in a statement on Wednesday that Chandran, Davidson, Glaspie, Knott, and Mossel "allegedly distributed false and misleading statements to investors regarding the alleged value of CoinDeal, the parties involved in the alleged sale of CoinDeal, and the use of investment proceeds from at least January 2019 to 2022. Therefore, SEC has charged creator of CoinDeal Crypto.

Moreover, SEC mentioned that no such sale of CoinDeal ever occurred, and no distributions were made to CoinDeal investors. The complaint further alleges that the defendants collectively misappropriated millions of dollars of investor funds for personal use and that Neil Chandran used investor funds to purchase items such as cars, real estate, and a boat.