The Arizona Corporation Commission has fined a Mexican citizen $15,000 for promoting My Trader Coin, also known as MTCoin, and defrauding investors.
The agency said that Jonathan Sifuentes Saucedo promoted the MTCoin cryptocurrency investment scheme by organizing presentations in hotels and offices, radio stations and even churches. His performances were held in Spanish and were aimed primarily at a Hispanic audience.
Saucedo urged people not to invest in a bank where they would just lie idle in a bank account. He called for investing in MTCoin instead, arguing that for every $1,000 invested in the project, investors would receive a 20% return ($200).
The Arizona Corporation Commission stated that the MTCoin project is not registered with the agency and violates securities laws. It also found that Saucedo made material misstatements and omissions in his investment program. Apart from making false claims and promising returns of over 300% per year, Saucedo did not warn investors about the risks associated with investing in cryptocurrencies.
In addition, he hid information from users that investors would not be able to withdraw the principal amount of the deposit and interest before a certain period. Saucedo pleaded not guilty, but did not deny the allegations. The regulator ordered him to return illegally received $70,000 to investors and pay an administrative fine of $15,000 for defrauding investors.
Recall that in July, the US Department of Justice accused four platforms of cryptocurrency fraud at once. Recently, the creator of EmpiresX, which was one of them, with a total investment of $100 million, pleaded guilty to conspiracy to defraud investors.
According to a survey conducted by Redfield & Wilton Strategies last year, 28% of Arizona residents are ready to vote for the adoption of cryptocurrencies as legal tender and support regulation that is loyal to the crypto industry.
Source: Bits
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