U.S. SEC Charges Two Brothers in $60M Ponzi Scam Using a Crypto Platform

As a seasoned crypto investor with over a decade of experience under my belt, I’ve seen my fair share of scams and shady deals in this rapidly evolving market. The recent news about the SEC charging two brothers for a $60 million Ponzi scheme involving a crypto trading platform is yet another reminder that caution should always be exercised when investing in digital assets.

On Monday, the U.S. Securities and Exchange Commission (SEC) accused brothers Jonathan and Tanner Adam of devising a fraudulent scheme worth approximately $60 million by misleading over 80 investors about their crypto asset trading platform. This scheme is believed to be a Ponzi scheme in nature.

Additionally, the SEC secured temporary financial restraints on Jonathan Adam from Angleton, Texas, his brother Tanner Adam from Miami, Florida, as well as their businesses, namely GCZ Global LLC and Triten Financial Group LLC.

From January 2023 through June 2024, it’s claimed that the brothers enticed victims with the offer of up to 13.5% monthly profits. The accusation states that this pair misled investors by claiming that Jonathan Adam had developed a “robot” functioning on a cryptocurrency trading platform, capable of detecting arbitrage trading possibilities.

The Securities and Exchange Commission claims that Tanner Adam and Jonathan Adam utilized the invested funds differently: Tanner allegedly used them to construct a $30 million condominium in Miami, while Jonathan is said to have spent at least $480,000 from investor funds on recreational vehicles. Furthermore, it was not disclosed to investors that Jonathan had previously been found guilty of three instances of securities fraud.

The Securities and Exchange Commission (SEC) intends to impose “long-term restraining orders, recovery of unjust profits along with pre-judgment interest, and monetary fines” on the siblings.