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The US Securities and Exchange Commission (SEC) has achieved a court decision against the main promoter of BitConnect, according to a new release from the regulator.
The US District Court for the Southern District of New York ruled against Glen Arkaro, who promoted BitConnect to retail investors in the US and through his company Future Money Ltd. attracted them to participate in the Ponzi scheme.
The SEC first filed a complaint against Arkaro, BitConnect founder Satish Kumbhani and Future Money in September this year, alleging that they conducted an unregistered securities offering through the BitConnect lending program.
“… none of them were registered with the Commission as a broker-dealer or associated with a registered broker-dealer – they told potential retail investors about the supposedly profitable investment in the Loan Program in YouTube videos, sometimes several times a day, with referral links, “the September complaint reads.
Arkaro admitted his guilt. He and Future Money agreed to court decisions that would permanently ban them from offering, managing or participating in certain marketing and trading programs, and from directly or indirectly participating in the offering of securities of digital assets. The decisions also order Arcaro and Future Money to return all illegally acquired income with interest.
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