The Securities and Exchange Commission (SEC) has charged Chicago Crypto Capital and three of its personnel including its owner, Brian Amoah for defrauding investors by offering unregistered crypto securities.
The other two personnel charged are former salesmen Darcas Oliver Young and Elbert “Al” Elliott. The accused allegedly functioned as illegal broker-dealers, raising at least $1.5 million by offering unregistered Beaxy (BXY) tokens.
The funds were raised by scamming about 100 people from approximately August 2018 through November 2019.
BXY is a token offered by now defunct crypto exchange Beaxy. Beaxy allegedly struck a deal with the Chicago Crypto Capital to sell these tokens to them in August 2018.
The SEC says that these tokens were not registered with the Commission, and they did not satisfy the exemption criteria as well. The accused were also not registered with the Commission as brokers.
The SEC also alleges that the company made misleading statements about the tokens, add-on fees charged by the firm, their personal investments in BXY and financial trouble with the issuer Beaxy.
The investors thus ended up paying an unknown amount on their tokens, however some of them never even managed to secure their BXY holdings.
Only Young has accepted an offer of settlement from the SEC, for an undisclosed amount.
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