US SEC sues to raise $26 million in "encrypted" Ponzi scheme operators

US SEC sues to raise $26 million in "encrypted" Ponzi scheme operators

The US Securities and Exchange Commission (SEC) is suing a California resident for allegedly selling unregistered securities and implementing a Ponzi scheme that pretends to be a cryptocurrency.

The US Securities and Exchange Commission announced on Thursday that it has applied for a ban on Daniel Pacheco, claiming that he sold unregistered securities through IPro Solutions LLC and IPro Network LLC, giving investors "scores", in theory they could These scores are converted into a digital asset pro currency associated with the company.

Pacheco reportedly raised $26 million through the program.

In addition, investors in the project can obtain additional points or cash commissions by recruiting new members, which is a common feature of Ponzi schemes.

Michele Wein-Layne, director of the SEC Los Angeles Regional Office, said in a statement that the defendant "hidden a common fraud in the name of cutting-edge technology" and added:

“He attracts investors by offering investors the opportunity to speculate in cryptocurrencies, but in reality he is only running a pyramid plan.”

Pacheco allegedly used his raised funds to purchase $2.5 million in housing and a Rolls Royce, which prevented him from paying investors cash commissions or other bonuses.

The US Securities and Exchange Commission said in its announcement that "Pacheco's provision and sale of intellectual property teaching packages constitutes unregistered securities sales because intellectual property teaching packages involve (i) investment in pyramid schemes; (ii) encryption Investments in monetary and digital assets must therefore be registered with the US Securities and Exchange Commission."

In its actual prosecution, the SEC also listed seven entities or individuals allegedly possessing WIPO investor funds, although they were not accused of any misconduct. (chain to finance)