SEC Fines Eight For $45 Million CoinDeal Blockchain Scam

Eight people and companies have been accused by the U.S. Securities and Exchange Commission for allegedly selling unregistered securities using the blockchain technology company CoinDeal.

According to an SEC press release, the defendants include Neil Chandran, Garry Davidson, Michael Glaspie, Amy Mossel, Linda Knott, AEO Publishing Inc., Banner Co-Op, Inc., and BannersGo, LLC.

Despite no acquisition or distribution of cash to investors, Chandran, Davidson, Glaspie, Knott, and Mossel allegedly stated that CoinDeal will be sold for billions of dollars. Chandran is also accused of using millions of dollars in investor money to purchase a yacht, homes, automobiles, and other items for his own use.

The SEC sent the complaint to the Eastern District of Michigan U.S. District Court.

“We allege the defendants falsely claimed access to valuable blockchain technology and that the imminent sale of the technology would generate investment returns of more than 500,000 times for investors,” Daniel Gregus, director of the SEC’s Chicago Regional Office, said in a release.

Since September 14, 2022, Neil Chandran has been jailed in the United States for offences involving wire fraud and two charges of conducting financial transactions involving illegally obtained property.

According to the SEC, Chandran used CoinDeal and other companies in his investment fraud schemes to swindle more than 10,000 people.