Challenge consulting firm. Chicago Crypto Capital and its three employees are being sued by the Securities Exchange Commission (SEC) for fraud and making an unregistered offering.
The second sued against Chicago Crypto Capital (sometimes referred to as CCC), its owner Brian Amoah and two sales managers, Darcas Oliver Young and Elbert “Al” Elliott, for allegedly defrauding investors during their unregistered offering of securities of crypto assets.
The company took advantage of the beginners
The company allegedly acted as unregistered brokers and sold BXY tokens worth $1.5 million to approximately 100 investors from August 2018 to September 2019. The complaint alleged that they misled investors , many of whom were beginners. They defrauded their investors on how the token would be managed.
According to the SEC, the defendant falsified information provided to investors regarding the custody and delivery of BXY, the mark-up charged by CCC, CCC’s liquidation of an investor’s BXY, their personal investments in BXY, and issues related to BXY’s issuer, Beaxy Digital Ltd.
“As a result of this alleged fraud, the SEC alleges that some of these investors never received their BXY tokens, and all of those who invested paid an undisclosed markup on their BXY tokens,” the SEC statement read. .
The SEC also added that Young, one of the sales managers, had already reached a settlement and confessed to consenting to the “payment of restitution and civil penalty, barring of association and an injunction”.
SEC on Crypto Crackdown
The commission has long shaped the legal narrative around digital assets. Last week, SEC Commissioner Gary Gensler Explain how he views cryptocurrencies.
“Of the nearly 10,000 tokens in the crypto market, I believe the vast majority are securities. Offers and sales of these thousands of crypto Security tokens are covered by securities laws. He further encouraged crypto companies and executives to register “to have their tokens registered and regulated,” urging crypto exchanges – both centralized and decentralized – to do the same.
Meanwhile, Gensler suggested that Bitcoin should be treated as a commodity – the view that it had expressed before – because it trades like a precious metal. “A rare, but digital, speculative store of value,” he added.
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