Reported by: Shalini Nagarajan

The Securities and Exchange Commission (SEC) continues to enforce legal action against bad actors in the crypto industry as regulators take steps to bolster investor protection laws.

Chicago Crypto Capital and three of its personnel were accused of defrauding investors by offering unregistered cryptoasset securities, an announcement on Wednesday showed.

The crypto broker’s owner Brian Amoah and former salesmen Darcas Oliver Young and Elbert “Al” Elliott allegedly functioned as illegal broker-dealers by offering unregistered Beaxy tokens (BXY), helping them raise $1.5 million from 100 inexperienced investors between Aug. 2018 and Nov. 2019. 

BXY was issued by defunct crypto exchange Beaxy, which allegedly struck a deal with Chicago Crypto Capital in Aug. 2018 to sell these tokens.

But the SEC said BXY was not registered with the Commission, nor did it satisfy exemption criteria. Further, none of the parties involved were eligible brokers.

Read full report: https://blockworks.co/sec-sues-crypto-broker-owner-salesmen-for-alleged-fraud/