The United States Securities and Exchange Commission (SEC) halted a confirmed cryptocurrency Ponzi scheme, following a steal worth $30 million, the regulator confirmed in a press release on May 21.
Jose Angel Aman, the principal behind Argyle Coin will now be subjected to legal action for running a Ponzi scheme and using the funds he gained from investors in his alleged diamond resale outfit. Aman has had drawn suspicion over similar diamond-related companies in the past, wherein each participant investor was promised huge returns through the reselling of wholesale diamonds.
Aman claimed that Argyle Coin had full backing in the precious stones. Eric I. Bustillo, director of the SEC’s Miami Regional Office, commented in the release:
“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. 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, have been named in the indictment along with Harold Seigel and Jonathan H. Seigel, who reportedly assisted him.
Argyle Coin alone had over 300 investors hailing from the U.S. and Canada, as participants. In addition, Aman is also accused of selling unlicensed securities over several years. Part of SEC’s ongoing crackdown on illegitimate cryptocurrency operators, the move is a wide-ranging attempt to legitimize the ecosystem as formal regulations are introduced.