Original title: SEC accuses blockchain Credit of illegally selling more than $30 million in securities Source: cnbeta
Blockchain Credit Partners, a blockchain credit company, has just been severely charged by the Securities and Exchange Commission (SEC). On Friday, SEC filed its first complaint with the "decentralized financial industry"-two company executives were accused of using the ethersquare block chain to sell cryptocurrencies to investors while misleading customers about profitability.
SEC said on Friday that BCP executives illegally sold more than $30 million of securities in unregistered offerings and misled investors' estimates of the company's profitability.
In essence, BCP requires investors to use digital assets such as ETH to buy cryptocurrencies and promises to pay investors more than 6 per cent interest. The company then used the money for physical investments such as car credit to generate additional revenue.
However, SEC bluntly pointed out that these investments in the "real world" will not achieve the high returns advertised by BCP.
Gurbir S. Grewal, the agency's head of law enforcement, said in a statement on Friday:
The charges against BCP executives on Friday are understood to come as the federal government is also preparing to issue new rules for "decentralized financial and cryptocurrency markets".
On Tuesday, SEC Chairman Gary Gensler called on Congress to grant the agency against cryptocurrency and creditMore regulatory power of the platform-"if we don't solve these problems, I'm worried that a lot of people will get hurt."