SEC Charges Creators of $60 Million Bitcoin Scheme

Two U.S. citizens have been charged with defrauding over 80 investors through a cryptocurrency pyramid scheme that resulted in $60 million in damages, as reported by the SEC.

According to the case documents, from January 2023 to June 2024, brothers Jonathan and Tanner Adam promoted a bot service with arbitrage trading capabilities, promising clients monthly returns of up to 13.5%.

The funds raised were used by the brothers for personal expenses. Tanner constructed a $30 million condominium in Miami, while Jonathan purchased vehicles worth at least $480,000. The latter had previously been convicted on three counts of securities fraud.

The SEC has secured a freeze on the assets of the individuals and their companies, GCZ Global LLC and Triten Financial Group LLC. In court, the regulator seeks “permanent injunctions, the return of ill-gotten gains with interest, and the imposition of civil penalties” against the brothers.

Earlier, the SEC accused NovaTech of orchestrating a $650 million financial pyramid.