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SEC charges three people for impersonating securities brokers in $2.9 million Bitcoin-related scam

Author: Content Editor
The U.S. Securities and Exchange Commission (SEC) has charged three Nigerian individuals for impersonating securities brokers and investment advisers in a scheme involving digital assets. The defendants allegedly diverted over $2.9 million from 28 investors by directing them towards fraudulent platforms, instructing them to purchase bitcoin, and transferring the funds to blockchain addresses linked to the defendants. The scheme involved creating websites impersonating professionals from established U.S. firms, using voice-modification software and online chats to build trust. The defendants set up fake investment account interfaces, showing unrealized gains to encourage victims to contribute further funds. The SEC's complaint seeks permanent injunctions, disgorgement, and civil penalties. The enforcement action highlights the increasing sophistication of impersonation scams in the crypto space. Investment professionals are advised to verify identities, avoid unverified contact details, and exercise caution when transferring funds via crypto.

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