SEC Sues organizer of fraudulent cryptocurrency Scheme for $6.9 Million

SEC Sues organizer of fraudulent cryptocurrency Scheme for $6.9 Million

The U.S. Securities and Exchange Commission (SEC) is seeking a ban on the activities of an Idaho resident who raised $6.9 million for fraudulent investments in digital assets.

According to a document filed by the SEC in the District Court of Idaho, a resident of the state Shawn Cutting (Shawn Cuttin) presented himself to potential investors as an experienced financial adviser, which allowed him to extort money for a fraudulent cryptocurrency scheme from 450 people.

In reality, Cutting had no such experience and spent $6.9 million to buy cars, renovate his home, and pay for his daughter’s wedding. He also gave false information to investors, describing a profit of more than 50% in one month, and paid them money similar to pyramid scheme payments.

Since February 2020, Cutting has been ignoring investor requests to withdraw money. In December, he also rejected an SEC request for access to his accounts, arguing for his right to financial confidentiality.

The SEC requires a restriction and prohibition on Cutting’s participation in actions related to the fraud described in the document. In addition, the regulator requires temporary, preliminary and permanent injunctions against Cutting, the return of illegally obtained income, as well as payment of legal costs.

In addition to Sean Cutting, the SEC complaint names his wife, Janine Cutting, and a number of different companies, including Crypto Traders Management and Golden Cross Investments, as defendants.

Earlier this year, the US Securities and Exchange Commission published a list of 28 unregistered cryptocurrency firms that provide false information to investors.