Shalini Nagarajan

<div id="highlights-block_6322f3cac4562" class="highlights">
 <ul>
 <li>The firm’s owner Brian Amoah and two other staff weren’t registered as broker-dealers</li>
 <li>Investors were charged undisclosed markups and weren’t told about financial troubles with BXY’s issuer</li>
 </ul>
 
</div>



The Securities and Exchange Commission (SEC) continues to enforce legal action against bad actors in the crypto industry as regulators take steps to bolster investor protection laws.



Chicago Crypto Capital and three of its personnel were accused of defrauding investors by offering unregistered cryptoasset securities, an <a href="https://www.sec.gov/litigation/litreleases/2022/lr25506.htm" target="_blank" rel="noreferrer noopener">announcement</a> on Wednesday showed.



The crypto broker’s owner Brian Amoah and former salesmen Darcas Oliver Young and Elbert “Al” Elliott allegedly functioned as illegal broker-dealers by offering unregistered Beaxy tokens (BXY), helping them raise $1.5 million from 100 inexperienced investors between Aug. 2018 and Nov. 2019.&nbsp;



BXY was issued by defunct crypto exchange Beaxy, which allegedly struck a deal with Chicago Crypto Capital in Aug. 2018 to sell these tokens.



But the SEC said BXY was not registered with the Commission, nor did it satisfy exemption criteria. Further, none of the parties involved were eligible brokers.&nbsp;



The company allegedly made false claims to investors about the custody and delivery of BXY tokens, add-on fees charged by the firm, their personal investments in BXY and financial trouble with the issuer Beaxy.



“Each of these misstatements would be information a reasonable investor would want to know,” the regulator wrote in its <a href="https://www.sec.gov/litigation/complaints/2022/comp25506.pdf" target="_blank" rel="noreferrer noopener">complaint</a>.



Consequently, some investors never managed to secure their BXY holdings and all investors ended up paying an unknown amount on their tokens, the SEC said.



So far, only Young has agreed to settle with the regulator for an undisclosed sum.



Chicago Crypto Capital sells cryptoassets and promotes other blockchain-related investments. Its <a href="https://chicagocryptocapital.com/about/" target="_blank" rel="noreferrer noopener">website</a> describes itself as an advisory firm created to explore decentralized finance.



Crypto-related enforcement actions have <a href="https://cms.blockworks.co/crypto-industry-eyes-secs-regulation-by-enforcement-ramp-up/" target="_blank" rel="noreferrer noopener">escalated in recent months</a> after liquidity concerns in the industry. SEC Chair Gary Gensler reiterated this week that <a href="https://cms.blockworks.co/gensler-crypto-intermediaries-must-register-with-sec-in-some-capacity/" target="_blank" rel="noreferrer noopener">crypto firms should register</a> with regulators. He said that the vast majority of nearly 10,000 tokens in the market are securities, and that he’s asked staff to work with crypto entrepreneurs to get their tokens registered. 



CCC didn’t return Blockworks’ request for comment by press time.



<hr class="wp-block-separator">
Get the day’s top crypto news and insights delivered to your inbox every evening.&nbsp;<a href="https://cms.blockworks.co/newsletter/?source=end" target="_blank" rel="noreferrer noopener">Subscribe to Blockworks’ free newsletter</a>&nbsp;now.
<hr class="wp-block-separator">

SEC Sues Crypto Broker Owner, Salesmen for Alleged Fraud

Westie

Kwenta: Perpetuals Powered by Synthetix

Permissionless is the brainchild of Blockworks and Bankless. Over 5,500 people attended the inaugural event in 2022, making Permissionless the world’s largest DeFi conference.&nbsp;



What sets Permissionless apart? It’s a crypto native’s paradise, crafted specifically for both builders and investors who are dedicated to scaling the industry.&nbsp;



Permissionless is headed to Austin in 2023, and you know what they say… Everything is bigger in Texas.&nbsp;



Permissionless 2023 will feature the biggest names in Web3, a gargantuan exposition hall filled with the top brands in the space, an awe-inspiring NFT Gallery, inclusive, community-focused parties and events, metaverse experiences, and so much more.



See you in Paradise.

Tickets

Join the Waitlist

250 tickets unlock every two weeks beginning on November 17, 2022. Once they're sold out, registration closes until the next release. 

General Admission Pass

Get notified 

Student tickets will be launching in early 2023

Student Ticket 

250 tickets unlock every two weeks beginning on November 17, 2022. Registration is now closed and will reopen on December 15.

untitled-design-8-copy-4

Untitled design (8) copy 4

untitled-design-8-copy-13

Untitled design (8) copy 13

untitled-design-8-copy-2

Untitled design (8) copy 2

untitled-design-8-copy-3

Untitled design (8) copy 3

untitled-design-8-copy-20

Untitled design (8) copy 20

untitled-design-8-copy-19

Untitled design (8) copy 19

untitled-design-8-copy-5

Untitled design (8) copy 5

untitled-design-9

Untitled design (9)

untitled-design-8-copy-15

Untitled design (8) copy 15

untitled-design-8-copy-6

Untitled design (8) copy 6

untitled-design-8-copy-11

Untitled design (8) copy 11

untitled-design-8-copy-21

Untitled design (8) copy 21

untitled-design-8-copy-8

Untitled design (8) copy 8

untitled-design-8-copy-9

Untitled design (8) copy 9

untitled-design-8-copy-12

Untitled design (8) copy 12

untitled-design-8-copy-10

Untitled design (8) copy 10

untitled-design-8-copy-14

Untitled design (8) copy 14

untitled-design-8-copy-16

Untitled design (8) copy 16

untitled-design-8-copy-17

Untitled design (8) copy 17

untitled-design-8-copy-18

Untitled design (8) copy 18

untitled-design-8-copy-7

Untitled design (8) copy 7

untitled-design-8-copy

Untitled design (8) copy

untitled-design-8

Untitled design (8)

untitled-design-9-copy

Untitled design (9) copy

untitled-design-10-copy

Untitled design (10) copy

untitled-design-10

Untitled design (10)

BUY TICKETS

Speaker applications can be submitted <a href="https://form.asana.com/?k=L3gwAY1GRAX-RRAGDZYc0g&amp;d=1199885946213540">here</a>. Due to the high volume of submissions, we will not respond to all applicants. We anticipate &lt;2% of applicants being selected.
Blockworks&#8217; content team will reach out in the event you are accepted to speak. Please do not follow up directly.

Speaker Application

<h2>Why Sponsor Permissionless 2023?</h2>
If you’re serious about crypto, you have to be at Permissionless. Permissionless brings together DeFi builders, DAO participants, protocol developers, crypto companies, funds and institutions, and more. It’s a true crypto-native’s paradise, where you’ll have the opportunity to showcase your offerings and form lasting connections with the community.
We’ll work with your team to define the perfect sponsorship opportunity that best fits your needs and budget. Want to do something completely revolutionary? Our team can help design a bespoke package that brings your vision to life.
Get in touch with us at <a href="mailto:sales@blockworks.co">sales@blockworks.co</a>
&nbsp;