By CCN: The U.S. SEC has secured a courtroom order to cease an alleged diamond-backed Ponzi scheme estimated to be price round $30 million. The securities regulator outlined how greater than 300 traders had been fleeced into handing over funds to Florida-based Argyle Coin LLC.
SEC obtains emergency order halting alleged diamond-related ICO scheme concentrating on lots of of traders https://t.co/sJIb2vCKsZ
— SEC_News (@SEC_News) May 21, 2019
Jose Angel Aman is the mastermind behind the scheme. The SEC alleges that two of his different firms – Natural Diamonds Investment Co and Eagle monetary Diamond Group Inc – are additionally a part of the rip-off, stating:
“According to the complaint, in October 2017, Aman and Jonathan H. Seigel continued the scheme by luring investors to invest in Argyle Coin, falsely claiming the investment was risk-free because it was backed by fancy colored diamonds, and promising to use investor funds to develop the cryptocurrency business.”
Horses, Rent, and Personal Expenses
The diamond-backed Ponzi scheme isn’t any completely different from another scam and in the end noticed Mr. Aman merely inform an elaborate story involving cryptocurrency. In stereotypical fashion, he used all new investor funds to pay earlier
suckers traders their “returns.”
“..according to the complaint, Aman, Natural Diamonds, Eagle, and Argyle Coin, misused or misappropriated more than $10 million of investor funds to pay other investors their purported returns and for Aman’s personal expenses, including rent on his home, purchases of horses, and riding lessons for his son.”
The report supplied no particulars on how Argyle Coin truly deliberate to develop its cryptocurrency enterprise. The Argyle Coin web site has since been eliminated. This contributor, nevertheless, was capable of seize a screenshot of the ICO rip-off website utilizing an internet archive:
SEC Cracks Down on ICOs
The previous inflow of ICO’s, significantly after the 2017 frenzy, remains to be holding the SEC busy. The company’s Cyber Task Force has been overseeing ICO’s and blockchain tech because the altcoin bubble two years in the past.
U.S. District Court decide Robin Rosenberg for southern Florida has granted the SEC a request to briefly freeze Aman and Argyle Coin’s belongings. The SEC has charged Aman, his firms, and two co-accused for securities registration violations and securities fraud. In phrases of reparations:
“The SEC’s complaint seeks disgorgement of allegedly ill-gotten gains and prejudgment interest.”
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