The U.S. Securities and Exchange Commission (SEC) is suing a day trader from Phildelphia for alleged fraud, claiming he used bitcoin to hide their profits. This is reported by Coindesk.
On 30th of October, the Commission issued a suit against Joseph Willner. He is accused in illegal taking over more than 100 brokerage accounts and using the victims' funds to artificially inflate stock prices that he would then trade against advantageously.
According to SEC, Willner used an unnamed bitcoin exchange to hide the profits from illegal activities and convert funds from $ to BTC. After that, funds were transferred to another unnamed person.
To mask his payments to the other individual as part of a profit-sharing arrangement, Willner allegedly transferred proceeds of profitable trades to a digital currency company that converts U.S. dollars to Bitcoin and then transmitted the bitcoins as payment.
SEC press release
The Commission states that these two people made at least $700k in profit, using the account take-over scheme and investigation is still going.
Account takeovers are an increasingly significant threat to retail investors, and it is exactly the type of fraud our new Cyber Unit is focusing on.
Co-Director, SEC’s Division of Enforcement