The United States Securities and Exchange Commission (SEC) has sued a Cryptocurrency Investments Company, Chicago Crypto Capital (CCC).
The SEC is accusing the firm of operating without being registered, an act which it said violates U.S. securities law.
The summon, issued by the SEC on Wednesday indicted three employees for selling $1.5 Million worth of cryptocurrency which it alleged, were not registered by regulators.
The employees indicted included the CEO of the firm, Brian Amoah, Darcas Oliver Young, and Elbert Elliott.
According to the document submitted, the employees had sold cryptos called BXY tokens to 100 investors.
Many of these investors, it alleged, had no prior cryptocurrency experience at the time it was sold, leading authorities to accuse them of misleading the investor
“BXY is a token aligned with the defunct crypto exchange Beaxy, according to the complaint. Hoping to raise capital and create a strong user base, Beaxy sold investors on a token that it said could generate initial coin offering (ICO)-era high gains. It had an agreement with CCC to sell them as well. CCC pocketed 3 cents of every 5 cent sale, the complaint said.
“CCC sold BXY to inexperienced investors without informing them of the company’s kickbacks, the complaint said. CCC later neglected to deliver BXY tokens to some of their buyers.” CoinGeek reports.