ToplineThe Securities and Exchange Commission has filed a lawsuit against five people for allegedly promoting BitConnect digital asset securities without proper registration, raising over $2 billion from retail investors. Michael Crypto) — failed to register as broker-dealers with the SEC, as required by the federal securities laws. The promoters, who advertised BitConnect's lending program on various "testimonial" style videos that appeared frequently on YouTube, received commissions based on their ability to solicit investor funds. One of BitConnect’s earliest naysayers was Ethereum founder Vitalik Buterin who condemned it as a “Ponzi scheme” in November 2017. The North Carolina agency also alleged promoters of BitConnect were acting illegally.

Source: Forbes May 28, 2021 20:48 UTC