SEC Gets Judgement Against Chicago Crypto Capital and Executives Previously Charged

The Securities and Exchange Commission (SEC) has received a default judgment against Chicago Crypto Capital (CCC) and its founder Brian Amoah and former salesperson Elbert “Al” Elliott. The defendants were previously charged with fraud and the unregistered offering of digital asset securities.

The SEC claims that the defendants offered an unregistered security in the issuance of BXY tokens raising approximately $1.5 million from around 100 investors.

The SEC’s complaint alleges that each of the defendants made materially false and misleading statements in the offer, purchase, and/or sale of BXY tokens, including about the custody and delivery of BXY, the markup charged by CCC, the delivery of account statements, CCC’s liquidation of an investor’s BXY, their personal investments in BXY, and the financial and management problems occurring at BXY’s issuer, Beaxy Digital Ltd., in late 2019.

The complaint also states that investors never received their tokens.

The judgments, entered on the basis of default, enjoin CCC, Amoah, and Elliott from violating securities law.

The judgments also permanently enjoin CCC, Amoah, and Elliott from participating, directly or indirectly, including, but not limited to, through any entity they control, in any offering of crypto asset securities; provided, however, that such injunctions shall not prevent them from purchasing or selling any crypto asset security for their own personal accounts.

Amoah is also barred from acting as an officer or director of a public company.

The judgments order Amoah and CCC to pay jointly and disgorgement of $935,599.65, plus prejudgment interest of $136,087.10, and Elliott to pay disgorgement of $21,777.64, plus prejudgment interest of $3,167.66.

The judgments also impose civil penalties of $1,339,368 on CCC, $245,553 on Amoah, and $133,938 on Elliott.

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