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CoinDeal scam creators charged with $45 million fraud

US authorities believe suspects promised victims they would earn 500,000 times more than what they paid.

The Securities and Exchange Commission (SEC) charged several individuals and businesses with involvement in a fraudulent investment scheme called CoinDeal that cost $45m to investors all around the world.

The SEC indicted Neil Chandran, Garry Davidson, Michael Glaspie, Amy Mossel, Linda Knott, AEO Publishing Inc, Banner Co-Op, and BannersGo for their involvement.

Chandran, Davidson, Glaspie, Knott, and Mossel tricked investors by promising monumental returns. The accused assured their victims that the money would be invested in a blockchain technology called CoinDesk that the scheme’s operators would later sell for trillions of dollars.

The SEC claims that the quintuple shared false information about the company’s value and ‘wealthy’ buyers supposedly considered buying CoinDeal.

“We allege the defendants falsely claimed access to valuable blockchain technology and that the imminent sale of the technology would generate investment returns of more than 500,000 times for investors,” said Daniel Gregus, Director of the SEC’s Chicago Regional Office.

Instead of working for their investors, suspects used the collected funds for personal use. According to the SEC, Chandran used the funds to purchase real estate, luxury vehicles, and a boat.

Last June, the US Department of Justice charged Chandran with wire fraud and other crimes. The suspect was charged with running a similar scheme where he lied to investors about high returns and took their money.

According to a DoJ statement, 100 different assets - bank accounts, real estate, and luxury vehicles, including 39 Tesla vehicles - were subject to forfeiture as proceeds of the fraud. If convicted, Chandran faces decades in prison.

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