BitConnect Promoters Pay Over $12M to Reach Settlement with SEC
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BitConnect promoters Michael Noble (also known as Michael Crypto), Joshua Jeppesen and Laura Mascola, have agreed to pay a fine of approximately $12.6 million to reach a settlement with the US Securities and Exchange Commission (SEC). According to the agency, the defendants have agreed to pay more than $3.5 million in cash and 190 bitcoin (EXANTE: Bitcoin).

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The watchdog says Jeppesen was a broker between BitConnect and promoters and represented BitConnect at conferences and promotional events, and Mascola received certain proceeds from Jeppesen's BitConnect activities. Noble is responsible for violating the registration provisions of the federal securities laws, the SEC said.

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Jeppesen is ordered to pay $3,039,485 in disgorgement and prejudgment interest, 190 Bitcoin in disgorgement, and a $150,000 penalty. The judgment against Noble orders him to pay disgorgement, prejudgment interest and a civil penalty in an amount to be determined by the court at a later date, while Mascola is ordered to pay $576,358 in disgorgement and prejudgment interest.

Earlier this year, the SEC filed another action against five persons, who allegedly promoted an unregistered digital asset securities offering BitConnect. The watchdog says the cryptocurrency-focused scheme raised over $2 billion from retail investors.

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