A British Columbia-based cryptocurrency platform has been found guilty of committing a $13 million fraud, according to the province’s securities commission.
The British Columbia Securities Commission (BCSC) announced on Tuesday that it has issued a decision against the Vancouver-based crypto platform, which goes by the name “Ethereum Project.” The decision states that the platform, along with its founder and sole director, committed fraud by soliciting investments from the public without being registered to do so.
The BCSC found that the platform and its founder, Lisa Cheng, raised approximately $13 million from over 1,000 investors between April 2017 and January 2018. The platform claimed to offer investments in a cryptocurrency called “Ether,” promising high returns and falsely claiming to be backed by a team of experienced professionals.
However, the BCSC found that the platform and Cheng did not have the necessary registration or exemptions to solicit investments from the public. In addition, the commission found that the platform’s claims about its team and the investment opportunities were false and misleading.
The BCSC also found that the platform and Cheng used investors’ funds for personal expenses, including luxury cars, travel, and dining. They also failed to disclose important information to investors, such as the risks involved in investing in cryptocurrencies.
As a result of these findings, the BCSC has ordered the platform and Cheng to cease all trading activities and pay back the $13 million to investors. They have also been banned from trading in securities, and Cheng has been banned from acting as a director or officer of any company.
The BCSC is urging investors to be cautious when considering investments in cryptocurrencies, as they are not regulated by the commission and can be highly risky. They also encourage investors to research and verify the credentials of any company or individual offering investment opportunities.
This decision by the BCSC serves as a reminder that fraudulent activities in the cryptocurrency market will not be tolerated. The commission will continue to take action against those who deceive and defraud investors, in order to protect the integrity of the market and the public.
