The SEC has filed charges against two brothers for allegedly organizing a $60 million Ponzi scheme in the cryptocurrency sector.
According to the complaint filed August 26 in the US District Court for the Northern District of Georgia, Jonathan Adam and Tanner Adam deceived more than 80 people by promoting a cryptocurrency trading bot that promised a 13.5% monthly return.
The regulator claims that from January 2023 to June 2024, the brothers lured investors by claiming that their trading bot could identify arbitrage opportunities on cryptocurrency platforms.
They also promised that the bot could place simultaneous buy and sell orders to profit from small price discrepancies in various markets.
However, the SEC alleges that the brothers misused $53.9 million of the total proceeds of $61.5 million.