•Six individuals and two companies have been charged by the US Securities and Exchange Commission for their involvement in the CoinDeal scheme, which raised over $45 million through the sale of unregistered securities to thousands of investors.
• The defendants are accused of wire fraud, selling unregistered securities, and using investor funds to finance a lavish lifestyle.
• Neil Chandran, who is already facing charges in a separate investment fraud case, is among those charged in the CoinDeal case. If convicted, he faces up to 20 years in prison.
The US Securities and Exchange Commission has charged six individuals and two companies in the CoinDeal scheme. This scandal erupted when the group behind it raised over $45 million from thousands of investors, by offering unregistered securities. The accused have allegedly pocketed huge profits from this scheme and have caused significant financial losses for these unwitting investors.
People should be aware of such fraudulent schemes and ensure that investments are made after thoroughly researching the company or individual offering an opportunity to invest. It’s up to governments, financial organizations, and relevant regulatory authorities to continue their efforts in protecting citizens from fraudulent activities like CoinDeal.
What was the CoinDeal scheme?
The CoinDeal scheme involved the fraudulent offer and sale of securities known as “CoinDeal tokens.” The defendants behind the plan allegedly made false promises of investments yielding returns of up to 1,200%. They also allegedly claimed that investing in these tokens was a way for investors to get in on the ground floor of an exciting new technology venture.
In reality, however, there was no legitimate technology venture associated with CoinDeal tokens. Instead, those behind the scheme were simply using investor funds to finance their lavish lifestyles and other personal expenditures—not to fund any technological development or growth opportunities. As a result, those who invested their money in the CoinDeal tokens lost all or most of their investments.
Who Was Involved in This Scheme?
The SEC charged seven individuals and two business entities with fraud related to this scheme—Neil Chandran and five others as well as two business entities: Nirvana Capital LLC and Global Investment Strategies Group LLC. These individuals were charged with various offenses including wire fraud, unregistered securities offerings and misappropriation of investor funds.
Potential Penalties for Those Charged
Those charged with participating in this fraudulent investment scheme could face significant penalties if found guilty. These could include jail time for those found guilty of wire fraud or other criminal charges related to the scam and financial penalties imposed on companies involved. In addition, those convicted may have to pay restitution for any losses incurred by investors due to their involvement in the CoinDeal scheme.
Neil Chandran has been charged in yet another case and the consequences are no laughing matter. In what is being called a ‘widespread fraudulent investment scheme’, he has been charged along with others for involvement in the CoinDeal case. If convicted, he could face up to 20 years in prison, compounding his existing sentence from a separate investment fraud case.
This latest criminal activity highlights the detrimental effects of fraudulent behavior in business and financial investments. Though a conviction may seem inevitable, Chandran still has the right to a fair trial and it will be interesting to observe whether he can avoid such severe punishment.
The SEC’s investigation into the CoinDeal scheme shows its commitment to protecting investors from fraudulent schemes like this one. It is important that investors always do their research before investing money with any company or individual—even if they promise large returns on investments—and be aware of potential red flags that could indicate a scam may be taking place. By being vigilant about where they put their money, investors can help ensure they don’t become victims of scams like this one.