The United States Securities and Exchange Commission (SEC) has shut down a cryptocurrency scheme, Argyle Coin, which was supposed to be backed by diamonds and it took funds worth USD30 million. After investigation, the commission has revealed it to the public and called it a Ponzi scheme. Now the SEC has singled out the Coin and the principal behind it, Jose Angel Aman, will now have to deal legal action for running a Ponzi scheme with using funds he received from his diamond resale effort.
Previously, Aman had drawn suspicious over similar diamond-related companies, promising investors to bring huge returns through the sale of wholesale diamonds. The alleged Argyle Coin had full backed with diamonds and during its activation, there were 300 investors in Canada and the U.S. In a press release, director of the SEC’s Miami Regional Office, Eric I. Bustillo commented that “As alleged, Aman operated a complicated web of fraudulent companies in an effort to continually loot retail investors and perpetuate the Ponzi schemes as well as divert money to himself.” He further added that “The SEC’s diligent investigative work uncovered the Ponzi schemes and our goal is to bring justice to the harmed investors.” Aman and his companies Natural Diamonds Investment Co. and Eagle Financial Diamond Group Inc, named in the indictment, along with two people Harold Seigel and Jonathan H. Seigel, who assisted him, were also to be facing the legal action.
For the last several years, Aman was also accused of selling unlicensed securities. As per the reports, the U.S. SEC has been more hostile in their actions against operators who act illicit activities in the cryptocurrency sector lately. As previously reported that the U.S. regulators introduced an effort called Operation Cryptosweep, which targeted compliance efforts made by several initial coin offerings (ICOs).