Officials of trade coin club charged with Ponzi scheme

The SEC has stemmed from an investigation into officials at Trade Coin Club after they participated in an illicit crypto Ponzi scheme.

The SEC said that a cryptocurrency project called Trade Coin Club raised more than 82 million US dollars from approximately 100,000 investors globally between 2016 and 2018.

The firm promised investors minimum returns of 0.35 daily from a crypto trading strategy, but it was not true and was in fact a scam, the SEC alleged.

The Securities and Exchange Commission has filed charges against people in Federal Court in Seattle.

A multi-level marketing program operated between 2016 and 2018 that offered profits from a trading robot for cryptocurrencies.

Trade Coin Club officials will face charges for violating federal securities laws.

The SEC's Office issued an alert to investors on pyramid schemes posing as multi-level marketing programs.