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The US Securities and Exchange Commission (SEC) accused a Latvian citizen of defrauding investors in two crypto products. The fraudster “used pseudonyms, fictitious entities, and fraudulent materials to implement his plan, and misappropriated almost all investor funds raised.”
Two fraudulent encryption schemes
The US Securities and Exchange Commission announced on Thursday that it “accused a Latvian citizen of defrauding hundreds of retail investors from at least US$7 million through two separate fraudulent digital asset securities products.”
Noting that Ivars Auzins defrauded U.S. and foreign investors, the securities regulator explained:
Auzins allegedly used pseudonyms, fictitious entities, and fraudulent information to implement his plan and misappropriated almost all investor funds raised.
His first plan is from January to March 2018. [initial coin offering] Denaro is a so-called multi-currency debit card platform,” the US Securities and Exchange Commission explained in detail.
The complaint stated that “all products or services claimed to be provided are fictitious, including relationships with credit card issuers,” and pointed out that “Auzins misappropriated all the proceeds of the ICO.”
His second plan runs from April 2019 to July 2019. “Auzins fraudulently provided Innovamine’s unregistered securities, which allegedly provided a cloud mining program,” the US Securities and Exchange Commission described, adding that he “misappropriated almost all of the funds raised in this offering. “
The securities regulatory authority explained in detail:
As we claim, Auzins has carried out a shameless plan under the guise of profitable digital asset opportunities to deceive retail investors.
Latvian citizens have been accused of “violating the anti-fraud and registration provisions of the Federal Securities Law”. The US Securities and Exchange Commission “seeks permanent injunctions, including conduct-based injunctions, recovery and pre-judgment interest, civil penalties, and injunctions on his officers and directors.”
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