SEC Accuses Saitama Inu and Robo Inu Promoter of Fraud

SEC has charged a U.S.-based Vietnamese citizen, Vy Pham, with fraud for her involvement in market manipulation schemes involving meme tokens Saitama Inu and Robo Inu.

The agency also alleges that the assets were offered and sold as unregistered securities.

According to the SEC, Pham (known by the pseudonym msvy_crypto) personally engaged in market manipulation of Saitama through coordinated token purchases with other promoters. This created the illusion of a growing market, attracting investors.

However, the regulator acknowledged that the accused’s involvement in the project was brief.

Later, msvy_crypto launched the meme coin Robo Inu, promoting it with unfounded claims. For instance, she stated that the coin was “inspired by NASA’s ambitious plan to send robot dogs to Mars.”

Pham also promised investors the construction of a “fintech ecosystem” that would “maximize the value” of Robo Inu.

To create artificial trading volume and manipulate the token’s price, the promoter hired market maker Gotbit.

Pham agreed to settle the charges. The settlement includes a ban on holding executive positions, the return of ill-gotten gains, and a civil penalty. The deal is subject to court approval, which will determine the financial penalties.

The SEC noted the assistance of the FBI and the Massachusetts Attorney’s Office in investigating msvy_crypto’s violations, with the latter also initiating a parallel criminal case.

As reported by CoinGecko, U.S. regulators have collected $32 billion from crypto projects in settlements over time.