The US Securities and Exchange Commission (SEC) has filed fraud charges against cryptocurrency consultant Gabriel Edelman, who defrauded investors of $4.3 million.
According to the regulator, Gabriel Edelman was engaged in an unregistered sale of securities through his companies Creative Advancement LLC and Edelman Blockchain Advisors LLC. He told investors that he would invest the proceeds from the sale of bonds in digital assets.
Instead, the “adviser” spent most of the funds for his own needs, actually invested a little in cryptocurrencies, and used part of it to pay investors. Thus, the scammer acted according to the classic Ponzi scheme.
The document notes that in total, Edelman collected $4.9 million from four investors. Of these, $447,300 were invested in digital assets, and he used at least $1.5 million for his own needs.
Representatives of the SEC emphasized that all four of the deceived investors are US citizens, “have a poor understanding of digital assets,” and three of them were even elderly.
Earlier, the regulator accused the organizers of the Chicago Crypto Capital cryptocurrency project of unregistered sale of securities and defrauding investors.
Source: Bits
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