CoinDeal Executives Convicted, Face Penalties for $45M Scam

IconCryptoNewsTerminal Staff11 Jul, 2024

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CoinDeal Executives Convicted, Face Penalties for $45M Scam

In a significant victory for investors, a US court has convicted CoinDeal scam operators Garry Davidson and Linda Knott. The US Securities and Exchange Commission (SEC) announced that the US District Court for the Eastern District of Michigan has convicted the pair, barring them from serving in leadership roles and ordering them to pay substantial penalties. CoinDeal was known for its fraudulent practices, luring investors with promises of astronomical returns of over 500,000 times their investment. However, the scheme collapsed, leaving investors with losses totaling $45 million. The SEC pursued the case, charging CoinDeal and its principals with violating federal securities laws. This conviction sends a strong message to those engaged in fraudulent activities in the cryptocurrency market. Investors should remain vigilant and exercise caution when dealing with such platforms, relying on reputable and regulated exchanges instead.

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