Share this article
U.S. SEC Charges Two Brothers in $60M Ponzi Scam Using a Crypto Platform
The complaint alleges that the duo falsely told investors about one of them creating a “bot” that operated on a crypto asset trading platform.
Updated Aug 27, 2024, 6:22 a.m. Published Aug 27, 2024, 6:19 a.m.
Make us preferred on Google
- The SEC charged two brothers with attempting to defraud more than 80 investors in a $60 million Ponzi scheme.
- The brothers allegedly told investors one of them had created a “bot” that operated on a crypto asset trading platform, which could identify arbitrage trading opportunities.
The U.S. Securities and Exchange Commission (SEC) has charged brothers Jonathan and Tanner Adam of attempting to defraud more than 80 investors with a $60 million Ponzi scheme involving a crypto asset trading platform, it announced on Monday.
The SEC also obtained "emergency asset freezes against Jonathan Adam, a resident of Angleton, Texas, and his brother, Tanner Adam, a resident of Miami, Florida, and against their respective entities, GCZ Global LLC and Triten Financial Group LLC."
STORY CONTINUES BELOW
Between January 2023 to June 2024, the brothers allegedly lured victims with the promise of up to 13.5 percent monthly returns. The complaint alleges that the duo falsely told investors that Jonathan Adam had created a “bot” that operated on a crypto asset trading platform, which could identify arbitrage trading opportunities.
The SEC also alleges that Tanner Adam used the funds to build a $30 million condominium in Miami, while Jonathan Adam used at least $480,000 of investor funds to purchase recreational vehicles. Jonathan also did not tell investors that he had previously been convicted of three counts of securities fraud.
The SEC is seeking "permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties" against the brothers.
Read More: U.S. SEC Settles with Abra Over Unregistered Sales of Securities
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
El Salvador's central bank buys $50 million of gold as government keeps adding bitcoin
The bitcoin-friendly nation's central bank now holds over $360 million of the yellow metal, while the government, led by President Nayib Bukele, has bitcoin holdings worth $635 million.
What to know:
- El Salvador's central bank added $50 million of gold to its reserves on Thursday.
- The country also made its usual purchase of 1 bitcoin, bringing the government’s holdings to 7,547 coins, worth $635 million.
Top Stories
