The U.S. Securities and Exchange Commission (SEC) has charged Jonathan and Tanner Adam for allegedly running a $60 million crypto Ponzi scheme that defrauded over 80 investors. The SEC secured emergency asset freezes against the brothers and their companies, GCZ Global LLC and Triten Financial Group LLC, to prevent further dissipation of investor funds.
False Promises and Fabricated Investments
The brothers promised investors high monthly returns through a cryptocurrency trading "bot" that supposedly utilized flash loans to capitalize on arbitrage opportunities. However, the SEC’s investigation revealed that the lending pool and trading bot were fictitious, and the majority of the $61.5 million raised was misappropriated.
Lavish Lifestyles Funded by Investor Money
The SEC's complaint highlights how the brothers used investor funds to finance lavish lifestyles, including purchasing luxury vehicles and making installment payments on a $30 million Miami condo. With less than $400,000 remaining in their accounts, the SEC is pursuing permanent injunctions, return of profits, and civil penalties against the Adams.
Read more at Decrypt.
