Specifically, on January 12, the SEC has pressed charges against Boaz Manor – who holds the citizenship of both Canada and Israel, his partner in crime, along with 2 related firms – CG Blockchain Inc. and BCT Inc. SEZC – for violation of the anti-fraud and securities registration provisions, under the federal securities laws.
The entire organized crime establishments managed to secure more than $30 million in a fraudulent ICO, executed with the primary goal to release hedge funds testing tool, for blockchain-based transactions recording.
The SEC claimed that during the period of August 2017 and September 2018, the convicts have run promotions and finalized transactions on crypto assets securities, in an attempt to design tech for hedge funds.
Manor has adopted the identity of “Shaun MacDonald” – a business partner of Edith Pardo – an individual from Israel based in New Jersey at the time, reportedly was the head of the company.
The pair claimed that they had 20 hedge funds for blockchain-based transaction recording testing in their possession at the time, while turned out only a prototype was sent to a few funds.
“As alleged in our complaint, Manor’s brazen scheme to conceal his identity and criminal history deprived investors of essential information and allowed defendants to take over $30 million from investors’ pockets.” Joseph G. Sansone – director of the SEC’s Market Abuse Unit – shared his regards concerning the problem.
The SEC is accusing the duo of disgorgement, regarding illegally acquired profits and interests, penalties, and injunctive relief.