By Tyler S - Wallet Specialist - 06-08-2021
The Securities and Exchange Commission, or SEC, has made the news recently in light of a $30 million fraud case concerning a DeFi project. The defendants include a Cayman Islands-based corporation and two other individuals, Gregory Keough and Derek Acree.
The defending people may be the first-ever to stand in court regarding decentralised finance (DeFi). To support this, the SEC announced just Friday that this is the first case that required legal action involving securities using DeFi technology.
The SEC sued Blockchain Credit Partners and the people involved, Gregory Keough and Derek Acree. The legal action is due to the defendants operating a business selling more than $30 million in unregistered securities since early last year.
In reports, the SEC claims that the defendants, Keough and Acree, misled their customers about how the company ran their business. The SEC further says that Keough and Acree failed to disclose that they may not pay interest and profits from offering and selling mTokens.
The business project claimed to have been buying auto loans; on the other hand, the SEC declared the pair from Florida utilised personal funds from their Blockchain Credit Partners for their mToken interest plan. The price to buy crypto coin DMG fell due to a DeFi project shut down in February, causing investors not to redeem their tokens.
Reportedly, the pair, Keough and Acree, eventually agreed to a cease-and-desist order. The order involves the company's crypto market investment offers as well as $12.8 million in disgorgement and $125,000 fines per token.
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Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards