On January 4, 2023, the United States Securities and Exchange Commission (SEC) filed charges in the District Court for the Eastern District of Michigan against six individuals and two companies for their alleged involvement in the CoinDeal investment scheme.
The SEC claims that CoinDeal raised over $45 million from the sale of unregistered securities to thousands of investors worldwide, and made false claims about access to valuable blockchain technology that promised returns of over 500,000 times the initial investment.
The SEC has also charged AEO Publishing Inc, Banner Co-Op, Inc, and BannersGo, LLC in connection with the case.
According to the SEC, the defendants used the funds from the alleged scam to purchase luxury items such as cars, real estate, and a boat.
The SEC is seeking to reclaim the stolen funds, as well as interest, penalties, and permanent injunctions against all of the defendants.
The defendants have been charged with violating anti-fraud and registration provisions of the Securities Act and Exchange Act.
One of the individuals charged in the case is already facing trial in a separate investment fraud case brought by the United States Department of Justice (DOJ).
In June 2022, the DOJ charged and arrested this individual on three counts of wire fraud for his alleged role in defrauding investors in a scheme involving false claims about the development of a metaverse and a native cryptocurrency.