The U.S. SEC [Securities and Exchange Commission] has banned activity of an another illicit crypto-related scam stealing several millions of dollars from its investors.
In line with a recent SEC’s announcement published on 19th June, the authority has been granted a restraining order and asset freeze against two Pennsylvania-based brothers allegedly operating 3 crypto scam schemes. Consistent with the SEC, Sean Hvizdzak and Shane Hvizdzak lied about their cryptocurrency fund performance by fabricating financial statements, instead redirecting investor funds to their own accounts with banks & cryptocurrency exchanges.
As by the United States District Court for the Western District of Pennsylvania, Hvizdzaks, Hvizdzak Capital Management, LLC, & High Street Capital, LLC, & High Street Capital Partners, LLC, are temporarily halted from operation for proceeding with an anti fraud provisions against federal securities laws.
Raised Over $30 Million’s In One Year
The ruling was served immediately after the SEC filed an emergency action with the court on 16th June. consistent with the SEC’s complaint, the Hvizdzak brothers are involved in cryptocurrency-related fraudulent activity since as of from July 2019 & continuing until May 2020. After establishing a fund to invest “in a wide sort of cryptocurrency investments,” in March 2019, Hvizdzaks purportedly accumulated around $31 Mln on one among the managed accounts.
In line with the complaint filed, Hvizdzaks transferred about $26 Mln from the fund’s account to personal accounts at banks and on popular crypto exchanges like Binance, Winklevoss twins-founded Gemini, and Bittrex. within the filing, the SEC added that it’s hard to trace stolen funds once they’re converted into crypto assets like Bitcoin [BTC].
While adding further, The securities regulator said:
“Once this fiat currency, as in this case Unites States dollars, is exchanged for a digital asset, Defendants can transfer the digital assets anywhere within the world with no bank and no government forms.”
In line with the SEC, the court will consider the further asset freeze and therefore the issuance of a preliminary injunction at a hearing on 30th June, 2020.
Serving its part as the leading global financial regulator, the SEC is actively fighting fraudulent activity within the cryptocurrency industry. Earlier in March 2020, the authority froze assets of an alleged crypto scam backed by a former state senator.