SEC Charges Brothers for $60 Million Ponzi Scheme Involving Crypto Trading Platform

The U.S. Securities and Exchange Commission (SEC) has charged two brothers, Jonathan and Tanner Adam, with orchestrating a $60 million Ponzi scheme using a cryptocurrency trading platform. The brothers allegedly deceived over 80 investors by claiming they had developed a bot capable of identifying arbitrage opportunities in the crypto market, while misappropriating the funds for personal use, including real estate and luxury items. The SEC is pursuing legal action, including asset freezes and demands for the disgorgement of ill-gotten gains.

The SEC has charged brothers Jonathan and Tanner Adam with a $60 million Ponzi scheme involving a fake crypto trading platform. Over 80 investors were misled by promises of high returns using a non-existent trading bot. The SEC seeks legal remedies, including asset freezes and penalties. This highlights the need for vigilance in cryptocurrency investments. Seems insurance scams are the most popular, feel free to review others here.

• Defendant: Jonathan Adam, Tanner Adam
• Crime: Fraudulent cryptocurrency investment solicitation
• Amount Defrauded: $60 million from more than 80 investors
• Method: Promised high returns via a crypto trading platform “bot” that could identify arbitrage opportunities; funds were instead used for personal expenses, including building a $30 million condominium and purchasing recreational vehicles.
• Legal Action: SEC obtained emergency asset freezes; seeking permanent injunctions, disgorgement of gains, and civil penalties.
• Investigation: Conducted by the SEC
• Additional Facts: Jonathan Adam failed to disclose his previous convictions for securities fraud.

Between January 2023 and June 2024, the brothers, Jonathan and Tanner Adam, operated a Ponzi scheme by convincing over 80 investors to invest in a fraudulent cryptocurrency platform. The brothers falsely claimed the existence of a proprietary bot designed to exploit arbitrage opportunities in the crypto market, promising returns of up to 13.5 percent monthly. The SEC charged them in August 2024 and obtained emergency asset freezes against the brothers and their associated entities.

The SEC has charged brothers Jonathan and Tanner Adam with defrauding over 80 investors in a $60 million Ponzi scheme involving a purported cryptocurrency trading platform. The brothers allegedly misled investors by claiming to have developed a bot that could generate high returns by identifying arbitrage opportunities. Instead, the funds were diverted for personal expenses, including real estate and luxury items. The SEC is seeking legal remedies, including asset freezes and civil penalties, while also highlighting the brothers' failure to disclose Jonathan Adam's past convictions for securities fraud. This case serves as a critical reminder of the potential risks associated with cryptocurrency investments and the need for robust regulatory oversight.