Crypto

The SEC Goes After Modern Money Team for a Potential $12 Million Scam

A lot of cryptocurrency projects have found themselves in the crosshairs of the SEC. For the Modern Money Team, or MMT, it seems the allegations of fraud and misleading investors have some merit to them after all.

Whenever a new company starts to promote cryptocurrency activities, scrutiny is warranted.

Modern Money Team is in Serious Trouble

More often than not, those new firms either turn into a scam or did not file with the proper authorities.

In the case of Modern Money Team, it appears there is a bit of both going on.

Not only did the team potentially scam $12 million, but they also misappropriated funds and lied to investors.

On the surface, the venture focused on crypto mining and multi-level marketing practices.

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Roughly 200 people invested in the mining scheme, whereas the MLM attracted around 1.800 users.

Even though the MLM arm stopped paying users in November 2019, they kept accepting signups and deposits until early March of 2020.

That is often a clear sign of a Ponzi Scheme running on its last legs.

According to the SEC, at least one individual misappropriated investor funds, whereas the other was blatantly running a Ponzi scheme.

That latter individual also has a Bitfinex account that held nearly 50 Bitcoin until May 2019. 

For now, the investigation is still ongoing. 

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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