This Recent Pump & Dump Scheme Had OSC, SEC Filing Fraud Charges

The United States SEC (Securities and Exchange Commission) and the OSC (Ontario Securities Commission) file parallel cases against two organizations. They’re Canada-based Cryptobonix and Arbitrade of Bermuda.

The OSC and SEC filed the charges over a suspected pump & dump scheme that tangled the DIG token. The agencies partook in a joint exploration into the undertakings of the associated companies. Also, the regulators investigated the organization’s associates and executives.

SEC Charges

According to SEC’s announcement, executives of Cryptobonix and Arbitrade made false remarks about Arbitrade’s business undertakings. The claims from May 2018 to January 2019 suggested that the organization purchased gold worth around $10 billion.

Moreover, the company advertised the Dignity token, stating that each coin enjoyed the backing of gold worth $1. Claims about the gold tie suggested that independent accounting companies audited the peg. Also, Arbitrade claimed that Max W. Barber facilitated the gold bullions acquisition.

The Securities and Exchange Commission stated that Barber is a self-titled global gold trader through his company SION Trading FZE. Moreover, the regulators clarified that there was no gold acquisition and everything was to fluctuate DIG prices and form hype around the sale.

The execs finally sold DIG worth $36.8 million to novice investors.


The OSC’s fraud charges highlighted a briefly different transaction history and timeline. Their press release suggested that the two firms undertook the above-highlighted deceitful advertising campaign. Moreover, they began fundraising from May 2017 to June 2019.

Furthermore, the Canadian agency alleged that Cryptobonix and Arbitrade raised $51M via DIG offering. The regulator added that the two companies didn’t file a prospectus for the DIG sale. Also, the organizations resorted to trading undertakings without appropriate registrations.

The OSC revealed that the companies’ execs misappropriated the money raised via DIG offerings. They diverted the cash for deals not associated with the company’s operations. Furthermore, they used the funds for payments to entities that the execs controlled and real estate investments.

Regulator Demands

The OSC and the SEC advised the associated courts to halt the undertakings of the highlighted firms in their jurisdictions. Moreover, regulators demanded the companies return all cash raised via DIG sale to investors. Also, they wanted the suspension of accused executives from their positions.

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