The US Securities and Exchange Commission (SEC) has sued five individuals for promoting BitConnect Initial Coin Offerings (ICO) via various mediums that helped the firm raise $2 billion. The five individuals are accused of promoting unregistered security, a common theme among many ICOs from 2017.
The chief regulatory body in a Friday briefing mentioned the promoters of the scheme received commission based on the cash and investment they brought in, and one of the promoters had allegedly bagged a commission of $2.6 million.
Lara Shalov Mehraban, an associate regional director for the SEC’s New York office said,
“We allege that these defendants unlawfully sold unregistered digital asset securities by actively promoting the BitConnect lending program to retail investors,”
Bitconnect was one among many ICO-era projects that managed to raise $2 billion from retail investors, but the exchange closed down soon after in January 2018, after receiving two cease and desist notices from stat
Źródło: https://coingape.com/sec-sues-five-bitconnect-promoters-over-2-billion-fundraise/
