SEC Sues Chicago Crypto Capital, Employees Illegally Sell BXY Tokens
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According to the lawsuit, Brian Amoah, the founder of Chicago Crypto Capital, together with salespeople Darcas Oliver Young and Elbert Elliott, reportedly sold BXY tokens to 100 investors, many of whom had no basic understanding of cryptocurrencies, between August 2018 and September 2019. They deceived those investors about how they were managing the token.
BXY Tokens
The lawsuit stated that BXY is a token associated with the defunct cryptocurrency exchange, Beaxy. Beaxy pitched investors on a token, which it claimed could earn large profits, similar to the initial coin offering (ICO) period, to acquire funds and build a substantial user base. Additionally, it had a sale deal with CCC. The complaint claimed that CCC kept 3% of every 5% transaction.
The complaint also stated that the cryptocurrency investment firm offered BXY to new investors without disclosing the payments received by the business. Later, CCC failed to send BXY tokens to some of its customers.
In violation of U.S. securities law, the SEC charged the group with working as unauthorized brokers and fraudsters. It aims to prevent them from promoting cryptocurrency securities.
Sections By Securities And Exchange Commission
CCC, Amoah, Young, and Elliott must answer charges for breaking the Securities Act of 1933, the Securities Exchange Act of 1934, the Securities Act, and the Exchange Act, according to the SEC's complaint lodged in the U.S. District Court for the Northern District of Illinois. The SEC demands civil fines, pre-judgment interest on disgorgement, and injunctive relief. The SEC approved Young's settlement offer, in which he agreed to pay disgorgement and a civil penalty.