Key facts
- The SEC alleges the companies defrauded investors of over $130 million.
- The scheme is described as Ponzi-like, using new funds to pay earlier investors.
The U.S. Securities and Exchange Commission (SEC) has filed charges against two companies for allegedly orchestrating a cryptocurrency trading scheme that defrauded investors of more than $130 million. The SEC described the operation as a Ponzi-like scheme, where funds from new investors were used to pay returns to earlier investors, rather than being invested as promised.