Another crypto company got shut down from the SEC because of a fraudulent crypto investment fund. The High Street Capital is now facing charges after running the fund and offering misleading investments so let’s find out more in the upcoming cryptocurrency news.
The company’s operators exaggerated the profits and transferred business money to their personal accounts and this is another crypto company that got caught by the SEC. The Securities and Exchange Commission announced emergency action against fraudulent investment funds operated by Sean Hvizdzak and Shane Hvizdzak.
Between July 2019 and May 2020, the Pennsylvania brothers offered crypto funds to investors to at least three of their country-based businesses: High Street Capital, High Street Capital Partners, and Hvidzak Capital Management. The brothers reportedly exaggerated the performance of the funds and they claimed that the fund was able to generate earnings of 100.77% and 92% in Q3 and Q4 of 2019. Eventually, the fund resulted in losses during that time. Also, they created fake financial statements and forged audit documents according to the SEC. The brothers were able to transfer tens of millions of dollars from the SEC fund to their own personal accounts so the court gave an order to an asset freeze and issued a restraining order against the company.
According to the local news reports, the FBI even visited the High Street Capital company earlier this week. This is another case by the SEC against a crypto company. EOS, Kin, Enigma, Telegram, Sia, Oporty, and BitClave have all faced penalties over the past few years but not all of the projects turned out to be fraudulent at the end so they only faced light penalties. Some members of the SEC such as the Commissioner Hester Peirce is known for advocating more permissive regulations and one of the changes should be upcoming this year. The SEC’s harsh stance against crypto funds and ICOs has made it quite hard for crypto startups to operate in the United States.
It seems that the Crypto Mom will remain at the SEC. Peirce is known for her pro-crypto stance and the crypto supports are extremely happy for this proposition. The commissioner has often criticized the institution for its inability to create crypto regulations. Now as we get Hester Peirce nominated again, she hopes if she gets elected, to bring a more positive stance towards crypto.
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