On Wednesday, the U.S. Securities and Exchange Commission (SEC) filed charges against the Chicago-based cryptocurrency investment firm, Chicago Crypto Capital (CCC), and three of its employees. The charges relate to the alleged sale of $1.5 million worth of unlisted cryptocurrencies. The SEC also informed about this lawsuit on its Twitter account. Today we charged Chicago-based Loop Capital Markets, LLC for providing advice to a municipal entity without registering as a municipal advisor. The action marks the first time the SEC has charged a broker-dealer for violating the municipal advisor registration rule. — U.S. Securities and Exchange Commission (@SECGov) September 14, 2022 According to the lawsuit, Brian Amoah, the founder of Chicago Crypto Capital, together with salespeople Darcas Oliver Young and Elbert Elliott, reportedly sold BXY tokens to 100 investors, many of whom had no basic understanding of cryptocurrencies, between August 2018 and September 2019. They deceived those investors about how they were managing the token. BXY Tokens The lawsuit stated that BXY is a token associated with the defunct cryptocurrency exchange, Beaxy. Beaxy pitched investors on a token, which it claimed could earn large profits, similar to the initial coin offering (ICO) period, to acquire funds and build a substantial user base. Additionally, it had a sale deal with CCC. The complaint claimed that CCC kept 3% of every 5% transaction. The...
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