U.S. SEC accused blockchain credit company of illegally selling over $30 million in securities

A blockchain credit company called Blockchain Credit Partners has just been severely accused by the US Securities and Exchange Commission (SEC). On Friday, the SEC filed its first accusation against the “decentralized financial industry”-two company executives were accused of using the Ethereum blockchain to sell cryptocurrencies to investors, and at the same time, they had some advantages in terms of profitability to customers. Misleading.

U.S. SEC accused blockchain credit company of illegally selling over  million in securities

The SEC pointed out on Friday that the two BCP executives illegally sold more than $30 million in securities in an unregistered offering and misled investors’ estimates of the company’s profitability.

In general, BCP requires investors to use digital assets such as ETH to purchase cryptocurrencies, and promises to pay investors more than 6% interest. The company then used these funds for physical investments such as auto loans to create additional income.

However, the SEC pointedly pointed out that these investments in the “real world” will not achieve the high returns in BCP propaganda.

U.S. SEC accused blockchain credit company of illegally selling over  million in securities

Gurbir S. Gurbir, head of the agency’s law enforcement department Grewal said in a statement on Friday:

It is reported that the US federal government is also preparing to promulgate new regulations for the “decentralized financial and cryptocurrency market” when the allegations were made to BCP executives on Friday.

On Tuesday, SEC Chairman Gary Gensler called on Congress to grant the agency more regulatory powers on cryptocurrency and credit platforms-“If we don’t solve these problems, I am very worried that many people will be harmed.”

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/u-s-sec-accused-blockchain-credit-company-of-illegally-selling-over-30-million-in-securities/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Leave a Reply