The Securities and Exchange Commission (SEC) has filed charges against the issuer of DWE and BPC alleging the issuance of unregistered securities. The SEC claims that Alexander Elbanna and his affiliated entities have committed fraud.
According to the SEC, between February 2018 and April 2021, Elbanna founded and promoted three enterprises: Digital World Exchange, LLC, Boostedpro LLC, and D.W. Exchange, LLC. Apparently, each business included a “proposed” crypto trading platform along with a native digital asset.
To support the launch of these exchanges, Elbanna needed investors to purchase DWE and BPC, as well as equity securities in the corporate entity that issued DWE.
The SEC alleges that Elbanna and his entities made materially false and misleading statements to investors concerning Elbanna’s level of technological experience and wealth, the risks involved in the investment, and the operation of the associated crypto asset trading platform.
The complaint states that investors lost over $1 million in the process.
Subject to court approval, the SEC reports that each defendant, without admitting or denying the allegations, consented to a settlement, agreeing to permanent injunctions against violating the charged provisions, conduct-based injunctions, and monetary relief in an amount to be determined by the court at a later date upon motion of the SEC.
Elbanna further consented to an officer and director bar.