The Securities and Exchange Commission has filed suit against Donald G. Blakstad for scamming investors partly through an allegedly fraudulent crypto mining operation.
In a filing Jan 8, the SEC alleged Blackstad, 60, bilked over $3.5 million from investors of three separate firms: an oil and gas company; a vehicle parts holding company; and "Energy Sources International", a purported cryptocurrency mining company whose Las Vegas datacenter has only one employee: Blakstad.The crypto mining operation specifically took in some $550,000 from five separate investors, all of whom were told by Blakstad their capital would cover equipment costs.
The SEC alleges Blakstad instead used nearly half the cash for himself at casinos, restaurants and hotels.
The regulator further alleges Blakstad kept up the ruse by issuing each of the five investors $60,000 checks as returns on their investments.
Blakstad was previously charged in July in a separate insider trading scheme worth $6.2 million.
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.
CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
SEC Charges Man Behind Alleged Crypto Mining Scam
pubblicato su Jan 9, 2020
by Coindesk | pubblicato su Coinage
Coinage
Notizie recenti
Vedi tutti
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.