SEC Sues Ex-New Yorker Alleging $4.4 Million Digital Asset Fraud

The SEC sued a resident of Spain over claims he raised almost $4.4 million in “Ponzi-like fashion,” targeting investors who thought they were investing in digital assets.

Gabriel Edelman told investors their money would be invested in digital assets, like WAX tokens, that he could obtain at a discount, the Securities and Exchange Commission said in a complaint filed Thursday in the US District Court for the Southern District of New York.

But just a small portion of the $4.39 million was actually invested in digital assets, the SEC said. Edelman used at least $1.5 million for personal expenses, including ...