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Crypto Trader Liable to SEC for Ponzi Fraud After Taking Fifth

Sept. 29, 2022, 9:31 PM

The SEC established securities fraud and other violations by the owner of a cryptocurrency investment fund even after he invoked his right against self-incrimination.

The Securities and Exchange Commission claims that Shawn Cutting lured about 450 investors into sending his company $6.9 million in cash and digital assets, much of which he allegedly used for personal expenses and Ponzi-like payments, the court said. Invoking his Fifth Amendment right allows the court to draw inferences against him, it said.

The SEC is entitled to summary judgment on Cutting’s liability for misrepresentations in securities sales, including that he had experience as a ...