Alexander Elbanna was today in the spotlight, not for his golden touch, rather because he perpetrated a fraud scheme involving unregistered offerings and sales of cryptocurrency asset securities. Elbanna and the three entities he runs: Digital World Exchange Boostedpro and D.W. Exchange were charged with defrauding over $1 million in investors by the Securities and Exchange Commission.
Imagine a magic trick where a magician pulls rabbits out of his hat. Replace Elbanna with the magician and the rabbits will be crypto assets. It sounds impressive, doesn’t it? What if the rabbits weren’t real? The SEC has made a number of allegations against Elbanna’s companies. The SEC claims that this was not magic but rather a carefully orchestrated illusion.
Elbanna, who was presented as a wealthier and technologically-savvy man, promised investors that they would get a golden goose if they bought in-house exchange assets or crypto asset security tokens. These tokens, christened “DWE” You can also find out more about the following: “BPC”The success of his proposed trading platform for crypto assets was tied to his plans. But was it a case where the hens were counted before they had hatched? The SEC thinks so.
Elbanna, his companies and their representatives are accused in the complaint of misleading and materially falsifying statements made to investors. These statements painted a rosy view of Elbanna’s technical prowess as well the risks of investing and the operation the crypto asset trading platforms.
As the old saying goes, not all that shines is gold. gold. In its complaint, the SEC claims that Elbanna’s false promises led to over $1,000,000 in losses for investors.
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Elbanna was accused of violating the Securities Act of 1935 and Securities Exchange Act of 1974 by the U.S. District Court of Middle District of Florida.
What happens next? The defendants have agreed to a two-part settlement, without admitting the allegations or denying them. It includes accepting permanent injunctions for violating the alleged provisions, conduct based injunctions and monetary compensation to be determined by the court later. Elbanna also agreed to a bar on officers and directors.
Angela Elbanna was also named in the complaint as a relief plaintiff. Deborah Maisel conducted the SEC investigation, which was overseen by Paul Pashkoff & Melissa Hodgman. Anna Area will lead the SEC’s litigation, with David Nasse supervising.
One thing is certain in this story of crypto assets, and the alleged deception: not all Midas touches turn to gold. It can lead to court cases and penalties. Will this be a cautionary story for investors? Time will tell.
When it comes to investing, it is important to remember that even though the promise of the golden goose can be appealing, it is also essential to make sure that you are not simply on a goose hunt. The story of Midas teaches us that not all gold is glittering.