Profit Connect’s promise of guaranteed returns on the investors was nothing more than a trap for investors. The company scammed the majority of its investors. However, this did not go unnoticed. The U.S Securities and Exchange Commission (SEC) has ensured investors that extremely strict action is going to be taken against the Profit Connect Wealth Services Inc. Multiple sources claimed that Profit Connect perpetrated a crypto scam and allegedly rob the investors. The authorities said that if this fraud goes unpunished, it will undermine all the claims and efforts put together by the U.S authorities to bring transparency to the crypto market.
The U.S securities regulators passed an executive order to acquire fleeting restrain order against the Profit Connect Wealth Services Inc. This temporarily freezes all the accounts owned by Profit Connect. Moreover, the restraining order also stopped Profit Connect from carrying out any business activity.
Recently questions have been asked from SEC’s representatives about its lawsuit against crypto exchange Ripple. Many have claimed that this lawsuit has malign intentions towards the exchange. It has damaged SEC’s goodwill. However, this time SEC vowed not only to protect its image but also investor’s wealth. XRP holders said that the current restraining order is not based on any bias. SEC has exercised the powers included in its mandate to protect the investors from any harm and financial scam. The Security and Exchange Commission said that they keep taking strict actions and continue to use their powers against these sorts of illegal activities to protect the public interest.
Profit Connect guaranteed massive returns as the company reportedly raised $!2million from over 277 retail investors. They told the investors that the company will use AI technology to trade crypto coins at a cheaper price. However, this was one of the biggest scams in recent days, which has caught the eye of many. Joy Kovar and her son Brent Kovar emerged as the main culprit.
The details revealed that the plan was to use the super computer’s Artificial Intelligence to invest in the crypto coins. The investigations have revealed that the culprits did not use any sort of money or exchanged any other digital assets to get crypto coins in return. The U.S security and exchange commission further added that the funds collected from retailers were never used for crypto trading. Instead, the funds were transferred to the Kovar family’s accounts. The money was later used to pay promoters so they might bring more investors on board. The SEC’s Los Angeles-based regional officer said that people must not fell for business ideas that offer massive returns with no risk involved.