SEC Files Charges Against Brothers for $60 Million Crypto Ponzi Scheme

The U.S. Securities and Exchange Commission (SEC) has taken legal action against brothers Jonathan and Tanner Adam, accusing them of orchestrating a $60 million Ponzi scheme. The SEC claims the duo attempted to defraud over 80 investors through a fraudulent crypto asset trading platform. The charges, announced on Monday, highlight a scheme that spanned from January 2023 to June 2024.

According to the SEC’s complaint, the Adam brothers enticed investors with the promise of impressive monthly returns of up to 13.5%. They allegedly convinced victims that Jonathan Adam had developed a sophisticated “bot” capable of identifying lucrative arbitrage trading opportunities on a crypto asset trading platform. However, these claims were entirely fabricated, and the returns were nonexistent.

Misuse of Investor Funds

The SEC further alleges that the brothers used the ill-gotten funds for personal gain. Tanner Adam is accused of using a significant portion of the money to finance the construction of a $30 million condominium in Miami. Meanwhile, Jonathan Adam allegedly spent at least $480,000 on recreational vehicles. Additionally, the SEC revealed that Jonathan failed to disclose his prior conviction on three counts of securities fraud to potential investors.

In response to these allegations, the SEC has obtained emergency asset freezes against the Adams and their associated entities, GCZ Global LLC and Triten Financial Group LLC. The Commission is seeking “permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties” to hold the brothers accountable for their actions.

This case underscores the SEC’s commitment to protecting investors from fraudulent schemes, especially in the rapidly evolving world of cryptocurrency. As the legal proceedings unfold, the agency’s actions serve as a stark reminder of the risks associated with high-return promises in the crypto space.