The SEC is doing its job in cryptocurrencies – After years of almost anarchy where almost everything was allowed on the market cryptocurrencies, it seems that the party of thieves is over. The Security and exchange Commission (SEC) has decided to embark on a crusade against malicious crypto projects whose ” Pump e I unload I’m an example. In this effort, the SEC can count on the support of other government agencies as well especially from the FBI who also wants to protect the consumer American from the pains of mafia 3.0.
The authors of Pump & Dump with DRY bread and water
In this case, the American financial policeman has several entities in his sights. This is society Arbitration Ltd., recorded in Bermuda, as well as two of its managers: James Goldberg and Stephen Braveman. There is also Cryptobontix Inc., a Canadian company founded and led by Troy Hogg. Finally, we find Zion Trading, a UAE company led by Max Barber. The latter presents itself as a so-called “international gold trader”.
What is the SEC reproach to these characters? For organizing, managing and benefiting from a Pump & Dump system between 2017 And 2019 around the token called the Dignity – the EXCAVATION. For this they are accused of ” violation of anti-fraud provisions and federal securities laws“. And the regulator will ask ” reimbursement of illicit gain plus prejudicial interest and civil pecuniary sanctions“. All with ” immediate and definitive injunction“.
But by the way, what is a Pump and drain ? Here is a four-act instruction manual, based on the specific case of Dignity. Note in passing all the irony in the name of the token.
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The Pump & Dump for mannequins
First of all, of course, you have to create a token. Troy Hogg allegedly approached the Russian developers who put the famous token into service on Ethereum dig. And this is the platform – Russian again – real currency which will offer “exclusively” this cryptocurrency for sale.
Then it comes legitimize the project and find a strong concept. In this case, it will be a token backed bygold physicist. 3 billions of Dig are proposed with an extremely simple logic: 1 Dig = 1 dollar in physical gold. It is an idea that is not revolutionary but that finds its audience, because gold has a reputation for being a solid asset.
Gold, cryptocurrencies, billions, the more beautiful, the more it passes!
So we will create a little ” advertising hype” organizing a Press conferencedoing press releases on the social networks is in the average specialized – which fall for some into the panel. The two companies therefore claim to hold 10 billion of physical gold – bought from Zion – for guarantee the project. And, the icing on the cake, we assure the community that an audit has been carried out and that the results are very good.
All that remains is inflate sale and for sale prices millions dollars in tokens to gullible consumers and / or deceived from the ultra positive communication of the project. The file here advances the figure of 36.8 million dollars. When the price is at its maximum superior – almost – sell all tokens in your possession. And you left the coursecollapse sipping mojitos in the tax haven of your choice.
From dig is back to zero and was removed from the Russian stock exchange much to the chagrin of those who thought they had bought tokenized gold. The protagonists of this case have violated art Securities Law of 1933 and the Securities Exchange Act of 1934. And the SEC will ban them from further liability in finance or publicly traded companies. So before you get started, weigh the pros and cons because too Kim Kardashian was captured by the patrol!
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