The U.S. Securities and Exchange Commission (SEC) has charged brothers Jonathan and Tanner Adam with orchestrating a $60 million pyramid scheme involving a fraudulent crypto trading platform, the regulator announced.
SEC Charges Two Brothers in $60 Million Crypto Ponzi Scheme, Freezes Assets
The scheme allegedly defrauded more than 80 investors between January 2023 and June 2024.
According to the SEC complaint, Adams lured investors with promises of monthly returns as high as 13.5%. They alleged that Jonathan Adam developed an automated trading “bot” that could identify profitable arbitrage opportunities on a crypto asset platform. The SEC says these claims are completely fabricated.
The commission also issued emergency asset freezes against the brothers and their companies, GCZ Global LLC and Triten Financial Group LLC.
The funds were allegedly diverted for personal luxuries, including a $30 million condominium in Miami for Tanner Adam and recreational vehicles purchased by Jonathan Adam using $480,000 in investor funds.
The complaint also reveals that Jonathan failed to disclose his prior convictions for three counts of securities fraud.
The SEC is pursuing permanent injunctions, restitution of ill-gotten gains, preliminary interest and civil penalties against the brothers.
The case underscores the agency’s ongoing crackdown on fraudulent crypto schemes and highlights the risks investors face in the rapidly evolving digital asset space.
*This is not investment advice.
