The U.S. Securities and Exchange Commission (SEC) has issued a cease and desist order and a $200 000 fine to Crypto Asset Management (CAM) cryptocurrency hedge fund and its founder Timothy Enneking. According to CNBC, this order is precedential as applied to a digital asset management fund.
It is pointed out in the order, that CAM “misrepresented” itself as the “first regulated crypto asset fund in the United States”. The fund managed to raise $3 600 000 from 44 investors in late 2017.
As explained in the SEC order, this fund has “never been registered with the Commission in any capacity.” Therefore, CAM “willfully”broke the law by making false claims about its non-existent credentials associated with trading securities and digital currencies.
The blacklisted company has agreed to suspend its business activities and proposed to return the investors’ funds. CAM has also agreed to pay the fine, though the company’s management has not admitted its guilt.
As reported earlier, the U.S. Securities and Exchange Commission (SEC) smacked the organizer of the fraudulent ICO Tomahawkcoins with unprecedented lifetime trading ban.