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Usha Yadav
Oct 1, 2022
by Usha Yadav

OSC and US SEC Unveil Parallel Charges Against Cryptobontix, Arbitrade

Arbitrade Cryptobontix

Table of contents

  1. Charges Against Cryptobontix and Arbitrade
  2. OSC and SEC Working Together
Both the Ontario Securities Commission (OSC) and the U.S. Securities and Exchange Commission (SEC) have accused executives of the cryptocurrency companies Arbitrade and Cryptobontix of fraud. The SEC accused the two companies, along with CEOs Troy Hogg, James Goldberg, Stephen Braverman, and self-described international gold trader Max Barber, of running a pump-and-dump scheme for the cryptocurrency token Dignity.

Charges Against Cryptobontix and Arbitrade

The agencies contend that between May 2018 and January 2019, Cryptobontix made misleading claims that Arbitrade had acquired and received $10 billion in gold and intended to back its DIG tokens with a $1 gold peg. The corporations allegedly persuaded investors that an audit by unbiased accounting organizations had confirmed the gold.

According to the regulators, the purchase statements were a deception to sell DIG tokens at an inflated price, culminating in the sale of $36.8 million in DIG. The OSC further claimed that Hogg and the businesses spent investor money on real estate purchases and payments to companies he controlled, among other things, unconnected to the DIG coins. It further emphasizes that Hogg neglected to file a DIG token sale with the OSC.

OSC and SEC Working Together

On concurrent investigations, the OSC and SEC worked together, according to their statements. The agencies are asking the courts in their respective jurisdictions to halt the companies' operations. Additionally, order them to return any gains obtained illegally, ban the executives and companies from holding similar positions, and impose other financial penalties that have not yet been determined.

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Securities and Exchange Commission (SEC) Ontario Securities Commission (OSC) U.S. and Canadian Securities Regulators Cryptobontix Arbitrade pump-and-dump scheme Dignity DIG tokens
OSC and US SEC Unveil Parallel Charges Against Cryptobontix, Arbitrade
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

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