SEC accuses Florida-based crypto trader of defrauding investors of $6.8 million

The U.S. Securities and Exchange Commission (SEC) accused a Florida-based businessman of defrauding investors in connection with cryptocurrency trading. 

The defendant named Thomas Ghiti received about $6.8 million from at least 18 investors, providing false information that he was a “trader who never loses money.”

The SEC contends that he provided investors with fake account statements to create the impression of managing approximately $100 million in assets.

The defendant promised clients that he would direct their funds into cryptocurrency trading. At the same time, Ghiti transferred only $970,000 of the $6.8 million received into trading accounts.

He also allegedly transferred $1.8 million to his son, and spent the remaining funds on investor payouts under a Ponzi scheme, as well as for personal expenses and gambling.

The SEC seeks penalties against Ghiti, including restitution with interest.

As noted, at the SEC’s request, the cryptocurrency startup Unikrn, which raised $31 million in its 2017 ICO, will pay a penalty for the unregistered sale of securities.

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