Regulation
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The U.S. and Ontario Securities Commissions almost simultaneously sued Bermuda-based Arbitrade Ltd and related Canadian Cryptobontix Inc.
The founders of the business are accused of scamming and manipulating the market when issuing their own Dignity token (DIG) cryptocurrency.
Opened offshore, Arbitrade Ltd deliberately registered Cryptobontix Inc in Canada in 2018 in order to offer American investors to invest in gold using digital currencies.
According to the assurances of the company, DIG was provided with supplies of gold from South Africa, as well as precious art objects. Independent investigations by the US SEC and OSC Ontario found that these were bogus contracts.
In addition to issuing unsecured tokens, Arbitrade Ltd used part of the issued cryptocurrency to manipulate the rate, so that after pumping it up, dump it. Investor losses are estimated at $54 million. American investors accounted for $36.8 million.
#SEC #OSC #Ontario #gold #token #case #court
