The complaint claims that the duo disseminated fraudulent information to investors regarding the creation of a “bot” that operated on a crypto asset trading platform by one of them.
Jonathan and Tanner Adam, brothers, have been accused by the U.S. Securities and Exchange Commission (SEC) with attempting to defraud over 80 investors with a $60 million Ponzi scheme that involved a crypto asset trading platform, the SEC announced on Monday.
As for Jonathan Adam and Tanner Adam, the SEC secured “immediate asset freezes” on them and their companies, GCZ Global LLC and Triten Financial Group LLC. Jonathan Adam lives in Angleton, Texas, while Tanner Adam is a Miami, Florida, resident.
The brothers allegedly enticed victims with the promise of monthly returns of up to 13.5 percent from January 2023 to June 2024. The complaint asserts that the duo deceived investors by fraudulently claiming that Jonathan Adam had developed a “bot” that could identify arbitrage trading opportunities and operated on a crypto asset trading platform.
The SEC also alleges that Tanner Adam utilized the funds to construct a $30 million condominium in Miami, and Jonathan Adam utilized at least $480,000 of investor funds to acquire recreational vehicles. Investors were also not informed of Jonathan’s prior convictions for securities fraud, which included three counts.
The defendant brothers are facing “permanent injunctions, restitution of ill-gotten earnings with prejudgment interest, and civil penalties” from the SEC.
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