The Securities and Exchange Commission has filed a complaint against two brothers for allegedly orchestrating a crypto Ponzi scheme valued at over $61 million.

According to the SEC, the two brothers, Jonathan Adam and Tanner Adam, orchestrated a crypto Ponzi scheme via their two firms, GCZ Global LLC and Triten Financial Group LLC. The duo also allegedly raised over $61 million from over 80 investors.

SEC says Adam brothers promised 13.5% monthly returns

As per the lawsuit filed by the SEC, the duo convinced and lured victims by promising a monthly investment return of up to 13.5%. The SEC mentioned that the Adam brothers lied to investors about creating a crypto bot.

The brothers told the investors that the crypto bot was operating on a crypto trading platform where it identified arbitrage trading opportunities. They also stated that the investor funds will be utilized in a lending pool that will fund flash loans through smart contracts to execute these arbitrage trades.

However, the SEC alleges in the lawsuit that there isn’t a lending pool as promised by the brothers.

Adam brothers used investor funds to build $30 million condominium

According to the lawsuit, the brothers used the investor funds to pay returns to the existing investors and, at the same time, pay for their luxury lifestyle.

The SEC alleged that Tanner used the funds to make the payment for building a Miami condominium worth $30 million. Also, Jonathan was accused of using the investor funds to buy cars, recreational vehicles and trucks.

Additionally, the brothers were alleged of using $1.8 million of investor funds to build houses in Texas for their parents and Jonathan’s in-laws.

Interestingly, the SEC complaint highlights that Jonathan hid his background of a three count securities fraud conviction to gain the trust of the investors.

“As we allege, the Adam brothers promised their investors high returns on a crypto investment that did not exist, and then used investor funds to make Ponzi-like payments and to purchase designer goods, recreational vehicles, and million-dollar homes,” the SEC said.

The SEC added that they will use all the tools at their disposal to stop those who are exploiting new technologies to scam investors.

Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0

PRC Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed