Takeaways From SEC’s Russian Crypto Ponzi Scheme Action

Haima Marlier, Lauren Wands, and Justin Young authored an article for Law360 covering the U.S. Securities and Exchange Commission (SEC) filing a complaint alleging that 11 crypto founders and promoters used the same illegal money-making tactics employed by Charles Ponzi a century ago with the advent of the Ponzi scheme.

“The SEC continues to aggressively pursue potential federal securities laws violations in the crypto world, even where there may be a low likelihood of recovery for investors due to the alleged perpetrators residing – and presumably, the ill-gotten gains being located – outside the U.S,” the authors wrote. “We expect that the SEC will continue to flex its muscles in the crypto space, and those involved in crypto offering and lending should monitor these developments closely.”

Read the full article.