The United States Securities and Exchange Commission (SEC) has initiated court docket proceedings in opposition to a California resident for allegedly working a multimillion-dollar cryptocurrency pyramid scheme, in response to a press launch printed on May 23.
The SEC alleges Daniel Pacheco of conducting a fraudulent, unregistered providing of securities by means of two California-based firms, IPro Solutions LLC and IPro Network LLC, from January 2017 by means of March 2018.
The firms purportedly attracted over $26 million from buyers who acquired “factors” that may very well be transformed right into a digital foreign money known as PRO Currency.
Investors who contributed extra funds had been advised they might earn money commissions and extra convertible factors by recruiting new buyers into the community. Michele Wein Layne, Director of the SEC’s Los Angeles Regional Office, stated:
“We allege that Pacheco hid an outdated fraud beneath the guise of cutting-edge know-how. He enticed buyers by providing them the chance to take a position in cryptocurrency, when in reality he was merely working a pyramid scheme.”
The SEC additionally alleges that Pacheco misappropriated buyers’ funds when he bought a $2.5 million house and a Rolls Royce vehicle.
Earlier in May, the SEC halted a confirmed cryptocurrency Ponzi scheme after it took funds price $30 million. The principal behind the scheme dubbed Argyle Coin, Jose Angel Aman, was accused of operating a Ponzi scheme utilizing funds he gained from buyers in his alleged diamond resale outfit.
In April, Cointelegraph reported that the SEC was going to rent a devoted employees member to supply experience on cryptocurrency, who will serve varied consulting roles. Duties will reportedly “interact with different Divisions and Offices on such issues; function the Division’s level of contact for home and worldwide regulators, market contributors, and the general public; present knowledgeable stage touch upon coverage and workstreams,” amongst others.