Fake SEC Certificates Used by Dozens of Crypto Advisors
Yesterday, the US Securities and Exchange Commission (SEC) asked a federal court to issue injunctions against several crypto investment advisory firms that displayed fake SEC certificates.
The commission filed 38 civil complaints against entities such as CryptoOrbit, Ftaexchange, Pinnacle, Quantum, RBH, and others, alleging they made materially false statements on Form ADV and failed to file disclosures.
Some of these companies claimed to have registered investment advisor status that didn't exist. For example, the crypto-focused Quantum Financial Institute pitched 'a multi-dimensional intelligent investment system' and 'courses' where students could learn about 'bitcoin giveaways' and 'the highest win-rate strategies.'
The SEC accused these entities of violating Sections 204(a) and 207 of the Investment Advisers Act. Commissioners have not quantified investor losses in these initial complaints.