The SEC ordered the BitConnect project to be closed down in 2018, leaving many investors out of pocket. However, according to a recent SEC filing, enforcement against past project promoters is still proceeding.
The Securities and Exchange Commission (SEC) of the United States has handed down its decision on three important persons involved in the now-defunct BitConnect project.
The SEC has confirmed final judgment against Bitconnect promoters Michael Noble and Joshua Jeppesen, as well as relief defendant Laura Mascola, according to the filing.
Jeppesen will be required to pay $3 million in disgorgement and prejudgment interest, according to the SEC. Jeppesen will also be fined $150,000 and will be had to hand over 190 Bitcoin worth $9.2 million.
On the Commission’s application, Noble will be forced to pay disgorgement, prejudgment interest, and a civil penalty in an amount to be set by the court at a later date. Finally, Mascola was fined $576,358 in disgorgement and pre-judgment interest.
Noble promoted BitConnect and marketed and sold securities in its “loan program,” according to the SEC. Noble also “offered and sold the securities without registering the securities offering with the Commission, or being registered as a broker-dealer with the Commission, as required by federal securities laws,” according to the ruling.
Jeppesen “acted as a conduit between BitConnect and promoters and represented BitConnect at conferences and promotional events,” according to the SEC, while Mascola “received certain revenues from Jeppesen’s BitConnect activities.”
The Securities and Exchange Commission recently filed a lawsuit against five BitConnect promoters for selling unregistered securities.
The SEC targeted YouTube channels for selling the unregistered lending platform in the most recent case, which happened in May 2021.
“We allege that these defendants unlawfully offered unregistered digital asset securities by actively marketing the BitConnect lending scheme to retail investors,” the SEC said in a statement.
We will attempt to punish those who benefit illegally by exploiting the public’s interest in digital assets accountable.”
