SEC Charges Three Individuals and Five Companies for Allegedly Committing “Piggy Bank” Crypto Scam

According to CoinDesk, the U.S. Securities and Exchange Commission (SEC) has filed lawsuits against three individuals and five companies for allegedly running a “piggy bank” crypto scam, and the lawsuits are said to be the SEC's first enforcement action against such a crypto scam, just as the U.S. House of Representatives' Financial Services Committee prepares to hold a hearing on the “piggy bank” scam. The lawsuit comes just one day before the U.S. House of Representatives Committee on Financial Services prepares to hold a hearing on the “piggy bank” scam. Gurbir S. Grewal, Director of the SEC's Division of Enforcement, said in a press statement that nexus-based investment scams, including those involving investments in crypto-assets, pose a significant risk to retail investors, and that the threat is growing rapidly as these scams become more prevalent among scammers. In both cases, we allege that the scammers created fake crypto ecosystems and presented false information to investors. Our allegations serve as a reminder to the public to be highly wary of investment opportunities promoted by strangers on social media.