SEC Charges Brothers in $60M Crypto Ponzi Scheme Involving Fake Trading Bot
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
The U.S. Securities and Exchange Commission (SEC) has filed charges against two brothers for allegedly orchestrating a $60 million cryptocurrency Ponzi scheme centered around a fraudulent trading bot.
The charges were detailed in a complaint filed on August 26 in the U.S. District Court for the Northern District of Georgia, Atlanta.
According to the SEC, Jonathan Adam and Tanner Adam lured more than 80 investors by promoting a non-existent crypto trading bot that they claimed could deliver impressive monthly returns of 13.5%.
The brothers allegedly operated the scheme from January 2023 through June 2024.
They managed to convince investors that their bot could identify arbitrage opportunities across various crypto platforms, allowing it to buy and sell assets simultaneously and profit from minor price differences in different markets.
The SEC’s complaint states that the brothers promised to pool investor funds into a lending system to facilitate flash loans and execute trades, with the borrowed assets being returned within the same blockchain transaction.
However, the SEC contends that the trading bot was a complete fabrication.
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