US SEC Charges Two Firms for Alleged Crypto Pump and Dump Scheme


The United States Securities and Exchange Commission (SEC), has charged two companies, their executives and an alleged international gold trader with running a scheme to increase demand for their digital token.
According to the agency, proceeds from the false promotion of the token totalled more than $36 million.
Fake $10 Billion Gold Bullion Purchase
A lawsuit was filed Friday, September 30, 2022 against a Bermudan company called Arbitrade and a Canadian firm Cryptobontix. It claims that Troy Hogg, the founder and owner Cryptobontix, James Goldberg and Stephen Braveman, COOs of Arbitrade and Max Barber were involved in an alleged pump-and-dump scheme that involved a cryptocurrency called Dignity, (DIG), from 2017 to 2019.
According to the SEC complaint, Hogg hired Russian developers in 2017 in order to create Dignity. This token was Ethereum-based and was owned and controlled both by Cryptobontix and Hogg. The coin began trading exclusively on Livecoin, which is a Russian crypto trading platform.
Both Arbitrade & Cryptobontix claimed that they purchased and received $10 billion worth of gold bullion from SION, an organization owned by Barber. Each of the three billion DIG tokens was backed by $1 of gold.
They also claimed that the auditing company was hired to audit the gold to increase investor confidence. The SEC claimed that the gold purchase and audit did not take place as these were tactics to convince investors to buy DIG tokens.

DIG Token Value dropped to zero

SEC also stated that Hog, Goldberg and DIG were able to sell DIG on Livecoin for $36.8 million at “artificially inflated prices.” After the token’s value fell to zero, DIG was removed from the Livecoin platform in February 2020.
According to the lawsuit, investors committed their funds using any crypto or bitcoin in order to invest in what they thought was an investment opportunity.
Accordingly, the SEC has charged the defendants with violating the antifraud, securities registration provisions of federal securities laws.
The SEC also requested that the court issue an officer-director bar to all individuals named in the lawsuit.

CryptoPotato: Two Companies Charged by the US SEC for alleged Crypto Pump and Dump Scheme

Read More

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami