The U.S Securities and Exchange Commission (SEC) filed a lawsuit against the Chicago Crypto Capital (CCC) in the United States District Court. SEC charged the CEO and owner of CCC, Brian B. Amoh, and two of his workers, Darcas Oliver Young and Elbert.G.Eliot with fraud.
SEC accused CCC of conducting unregistered offerings of crypto assets “BXY” to investors from August 2018 to November 2019. CCC had allegedly raised over $1.5 million from this act by defrauding 100 individuals. These individuals were investors ignorant of this scheme with no knowledge of crypto investments.
These BXY offerings were not registered with the company, said SEC. They were all out to mislead investors with fake promises. These promises portrayed the BXY tokens as good investment plans with high utilities.
CCC was accused of giving misleading information about the offers, sales and purchases of BXY tokens. CCC Misled investors about how the tokens were stored and delivered upon requests. When it was time to deliver, they failed and made flimsy excuses about their incompetence.
Investors purchased BXY tokens believing they would receive more BXY tokens after the launch. The CCC persuaded them to take this as an excellent opportunity to make good money.
They made false reports on the account statement and personal investment in BXY. All required information investors needed to know was all fabricated. They acted as registered brokers and gave investment advice while defrauding the investors.
The company carried on with these fraudulent activities for a year. Most of their workers had no knowledge of trading and investment in crypto, as stated by the report.
The SEC is demanding they do not go unpunished. They also demand they be stripped of all their rights to trade in crypto assets and their license to operate as a crypto exchange. However, CCC kept on denying these accusations.
The Whole Story
CCC is a company that sells crypto assets and blockchain tokens. Brian Barlett Amoh has been this company’s president and sole owner since April 2017.
Beaxy was the web-based trading platform for crypto assets, “Beaxy Exchange.” This platform planned to launch in 2019, and to fund this launch, this exchange started trading BXY tokens.
With CCC’s extensive network, the Beaxy exchange entered an agreement with the company to sell their BXY tokens. CCC was promised a profit of three from every five sales made.
CCC sold this token without giving investors adequate knowledge about their deal with Beaxy exchange. They claimed the tokens they bought were big money tokens and had many utilities.
Whereas that wasn’t the case. Beaxy has retained CCC for the express selling of BXY tokens to unaccredited investors.
There was a case where an older woman had no investment knowledge and told CCC agents she wanted this as a retirement plan. They encouraged her to invest without letting her know that these BXY tokens were of no utility. She deposited $47,000 then, and now they are worthless.
They defrauded investors, told them to buy BXY tokens, and get their tokens at launch. However, at launch, they informed investors that there were two ways to access these tokens: create a wallet or tell the company to hold and liquidate on your behalf.
Most investors had no knowledge of opening wallets, so they chose the second. After the launch, none of the tokens were sent, and complaints were made, but the exchange fabricated lies and denied fraud claims. As a total sum of $1.5 billion was swindled by CCC, investors lost their money.