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BitConnect Promoters are Reaching for Settlement with SEC

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US-based promoters of notorious crypto Ponzi scheme, Bitconnect, are reaching for settlements with the Security and Exchange Commission of the United States (SEC).

SEC is closing in on settlements with four promoters of Bitconnect. These four individuals are based in the United States. The terms of the agreement are written. However, the final approval of judge John Koeltl is required before enforcement.

In May this year, SEC brought a lawsuit against six individuals who were involved with BitConnect Platform. The business model of the platform involved daily returns without risk. The users were supposed to pledge bitcoin to borrow and trade BitConnect Coin.

BitConnect closed its lending platform and investors were not given the chance to pull out their investment. The value of its Token fell 92%.

The promoter of BitConnect Joshua Jeppesen of Massachusetts is expected to pay $3 Million in the settlement. Additionally, his fiance Laura Mascola has to present $76,000. Jeppesen was promoting BitConnect at a national level. Whereas the regional promoter Ryan Maasen was to pay $526,000 and another regional promoter of California Michael Noble was also on track to a settlement with an undetermined amount.

Also Read: FinCEN hires Chief Digital Currency Advisor

The two other regional promoters based in the US are yet to come on terms with SEC.

BiotConnect is by far the largest Ponzi scheme in the history of Cryptocurrency. The platform was shut down abruptly with a cease and desist order from two different states of the United States. UK-based platform left the investors holding a sharply declining token. Thousand of investors were robbed of nearly $2.5 billion.

The promoters of BitConnect were spread across the globe. With the fallout, every person who was introducing the platform with some stakes in it is now facing charges in courts.

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