SEC accuses California man of $3.6 million Bitcoin fraud

The U.S. Securities and Exchange Commission (SEC) has charged California resident Ryan Ginster with conducting two unregistered and fraudulent securities offerings, through which he raised $3.6 million in Bitcoin.

According to the SEC, from 2018 through 2021 Ginster attracted digital assets via two online platforms — MyMicroProfits.com and Social Profimatic.

He promised investors “astronomical rates of return” and made false statements about profits linked to “cryptocurrency trading and arbitrage”.

The regulator alleges that Ginster defrauded investors of both offerings, while diverting at least $1 million of the proceeds to personal use.

“The defendant allegedly operated a fraudulent scheme to solicit cryptocurrency through online investment programs, and then converted the assets for personal gain. Individuals who hide behind the anonymity of cryptocurrency transactions to defraud investors should expect that the SEC will trace their illicit activity and hold them to account,” said a spokesman for the agency.

The SEC is seeking a permanent injunction against Ginster, disgorgement with prejudgment interest, and civil penalties.

In September, a coalition of American investor-protection groups urged the SEC to tighten enforcement against cryptocurrency projects that violate the law.

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