SEC Charges California Resident for Alleged $26 Million Crypto Pyramid Scheme
Ana Alexandre's original article for cointelegraph.com reduced by 53%
The United States Securities and Exchange Commission has initiated court proceedings against a California resident for allegedly operating a multimillion-dollar cryptocurrency pyramid scheme, according to a press release published on May 23. The SEC alleges Daniel Pacheco of conducting a fraudulent, unregistered offering of securities through two California-based companies, IPro Solutions LLC and IPro Network LLC, from January 2017 through March 2018. The companies purportedly attracted over $26 million from investors who received "Points" that could be converted into a digital currency called PRO Currency.
Investors who contributed additional funds were told they could earn cash commissions and additional convertible points by recruiting new investors into the network. The SEC also alleges that Pacheco misappropriated investors' funds when he purchased a $2.5 million home and a Rolls Royce automobile. Earlier in May, the SEC halted a confirmed cryptocurrency Ponzi scheme after it took funds worth $30 million.
The principal behind the scheme dubbed Argyle Coin, Jose Angel Aman, was accused of running a Ponzi scheme using funds he gained from investors in his alleged diamond resale outfit.
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