The U.S. Securities and Exchange Commission (SEC) has charged two brothers, Jonathan and Tanner Adam, with orchestrating a $60 million Ponzi scheme that defrauded more than 80 investors. The brothers allegedly lured investors with the false promise of a sophisticated “bot” designed to operate on a crypto asset trading platform, claiming it could identify arbitrage trading opportunities.
According to the SEC, the Adams promised victims returns of up to 13.5 percent per month between January 2023 and June 2024. However, the complaint reveals that the “bot” was a fabrication, and the funds collected were instead used for personal gain.
Tanner Adam allegedly funneled money into the construction of a $30 million condominium in Miami, while Jonathan Adam spent at least $480,000 on recreational vehicles. Additionally, Jonathan failed to disclose to investors that he had previously been convicted of securities fraud.
In response to the alleged fraud, the SEC has obtained emergency asset freezes against the brothers and their entities, GCZ Global LLC and Triten Financial Group LLC. The SEC is also seeking permanent injunctions, the disgorgement of ill-gotten gains with prejudgment interest, and civil penalties.
The case underscores the ongoing risks associated with cryptocurrency investments and the severe consequences for those who engage in fraudulent schemes.