SEC sues organizer of fraudulent cryptocurrency scheme for $ 6.9 million

The US Securities and Exchange Commission (SEC) is demanding a ban on the activities of an Idaho resident who raised $ 6.9 million for fraudulent investments in digital assets.

According to a document filed by the SEC in Idaho District Court, state resident Shawn Cuttin appeared to potential investors as an experienced financial advisor, which allowed him to defraud 450 people for a fraudulent cryptocurrency scheme.

In reality, Cutting had no such experience and spent $ 6.9 million buying cars, renovating his house and paying for his daughter’s wedding. He also gave investors false information, describing a profit of more than 50% in one month, and paid them money by analogy with the payments of a pyramid scheme.

Since February 2020, Cutting has begun to ignore investor withdrawal requests. In December, he also rejected the SEC’s request for access to his accounts, arguing that he had a right to financial confidentiality.

The SEC requires the restriction and prohibition of Cutting’s participation in activities related to the fraud described in the document. In addition, the regulator requires temporary, prior and permanent injunctions against Cutting, the return of illegally obtained proceeds, and the payment of legal costs.

In addition to Sean Cutting, the SEC complaint lists his wife Janine Cutting and a number of different companies, including Crypto Traders Management and Golden Cross Investments, as defendants.

As a reminder, earlier this year, the US Securities and Exchange Commission released a list of 28 unregistered cryptocurrency firms providing false information to investors.

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