- The SEC froze $60M worth of crypto trading bots
- They were used in the Ponzi Scheme by Jonathan and Tanner Adam
- They defrauded over 80 and spent the investments for personal use
The SEC froze $60 million in assets of Jonathan and Tanner Adam after discovering the Ponzi Scheme they created.
They promised high returns using a trading bot and frauded more than 80 investors.
The case is developing and the SEC is trying to get an injunction and recover the funds.
Details of the SEC’s Case Against the Adam Brothers
The SEC alleges that Jonathan and Tanner Adam created the Ponzi Scheme promising high returns of 13.5% monthly.
They attributed these high returns to the use of an advanced trading bot, making a compelling case to over 80 U.S. investors.
Their Ponzi Scheme ran from January 2023 to June 2024, and throughout that time, users’ investments were spent on the brothers’ expenses.
Adam Brothers’ Specific Expenses and Figures
The SEC alleges that most of the investments were used to cover the brothers’ personal expenses and in particular purchases of real estate, vehicles, and luxury goods.
Among particularly large purchases, Tanner Adam bought a $30 million condominium in Miami, and Jonathan Adam spent $480,000 on vehicle purchases.
The disclosure of this information allowed the SEC to successfully seek an emergency asset freeze of the Adam brothers, as well as their companies GCZ Global LLC and Triten Financial Group LLC.
The SEC is now seeking further injunctive relief and full restitution to the affected investors.
Conclusions
Unfortunately, even an initially technologically safe and secure area like the crypto industry is not immune to fraud.
Even with strong technology, the main vulnerability is still human and that is why it is important to educate investors and users to prevent such cases.
Stay tuned for the latest developments in blockchain and Web3 events to make educated and informed decisions.
