SEC Puts A Stop To Crypto Scam

Two Brothers Steal Millions From Investors

The U.S Securities and Exchange Commission (SEC) has put a stop to the activities of an alleged crypto scam for stealing millions of dollars from investors.

The SEC announced that it had placed a restraining order against two brothers in Pennsylvania in relation to three crypto scam schemes. According to the commission, brothers Sean and Shane Hvizdzak lied about their cryptocurrency fund capabilities by doctoring financial statements. Rather than invest the funds as they claimed, they were redirecting them into their personal accounts.

According to the ruling by the US District Court for the Western District of Pennsylvania, the operations of the brothers were temporarily halted for violating the anti fraud provisions of federal securities laws.

SEC crypto scam

The Brothers Took More Than $30 Million From Investors

The court ruling comes at the back of the SEC emergency action filing with the court. The complaint mentioned that the brothers have been involved in crypto-related scams in the last 12 months. From July 2019, to May 2020, the brothers collected more than $30 million from investors.

According to the SEC, the Hvizdzaks brothers moved more than $25 million from the company’s account to their personal account in various banks, and crypto exchanges. In the court filing, the SEC stressed that it is difficult to trace stone funds as soon as they are converted into cryptocurrencies.

“Once this fiat currency, in this case U.S. dollars, is exchanged for a digital asset, Defendants can transfer the digital assets anywhere in the world with no bank and no government forms,” the SEC said.

The SEC mentioned that the court will place an order to freeze the remaining assets of the brothers, and also issue a preliminary injunction at the next hearing at the end of the month.

As one of the leading financial regulator in the world, the SEC is working fervently to curb fraudulent activity in the cryptocurrency world.

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