The U.S. Securities and Alternate Fee (SEC) has charged a citizen of Latvia with defrauding traders in two crypto choices. The fraudster “used pretend names, fictitious entities, and fraudulent profiles to perpetrate his schemes, and misappropriated almost all the investor funds that have been raised.”
Two Fraudulent Crypto Schemes
The SEC introduced Thursday that it has “charged a Latvian citizen with defrauding tons of of retail traders out of not less than $7 million by way of two separate fraudulent digital asset securities choices.”
Noting that Ivars Auzins defrauded U.S. and overseas traders, the securities watchdog defined:
Auzins allegedly used pretend names, fictitious entities, and fraudulent profiles to perpetrate his schemes, and misappropriated almost all the investor funds that have been raised.
His first scheme ran from January by way of March 2018. “Auzins fraudulently provided and offered unregistered digital tokens as a part of an ICO [initial coin offering] of Denaro, a purported multi-currency debit card platform,” the SEC detailed.
The grievance alleges that “all the claimed services or products being provided have been fictitious, together with the connection with the bank card issuer,” noting that “Auzins misappropriated all the ICO’s proceeds.”
His second scheme ran from April by way of July 2019. “Auzins fraudulently provided the unregistered securities of Innovamine, which purportedly provided a cloud mining program,” the SEC described, including that he “misappropriated almost all the funds raised within the providing.”
The securities regulator detailed:
As we allege, Auzins was engaged in a brazen scheme to defraud retail traders below the guise of worthwhile digital asset alternatives.
The Latvian citizen is charged with “violating the antifraud and registration provisions of the federal securities legal guidelines.” The SEC “seeks everlasting injunctions, together with conduct-based injunctions, disgorgement plus prejudgment curiosity, civil penalties, and an officer-and-director bar in opposition to him.”
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