SEC Ends Probe into Paxos with No Action on BUSD; SEC Secures Default Judgments in $45 Million Coindeal Fraud Case
The SEC concluded its investigation into Paxos without taking any enforcement action against the BUSD stablecoin. The District Court for the Eastern District of Michigan has sentenced Harry Davidson and Lynn Knott in absentia for their roles in the $45 million Coindeal fraud scheme.
In a major victory for the crypto industry, the SEC has concluded its investigation into Paxos without taking any enforcement action related to its BUSD stablecoin. This decision indicates a positive regulatory stance and bolsters confidence in the use of stablecoins.
SEC Secures Default Judgments in $45 Million Coindeal Fraud Case
The U.S. Securities and Exchange Commission (SEC) announced this week that the U.S. District Court for the Eastern District of Michigan has issued default judgments against Garry Davidson and Linda Knott for their involvement in a fraudulent $45 million Coindeal scheme. Davidson and Knott were accused of deceiving investors with false promises of significant returns from an alleged sale of blockchain technology, Coindeal, to wealthy buyers. The fraud spanned from January 2019 to mid-2022, during which they misled investors about Coindeal's value and misappropriated funds for personal use. The court found Davidson and Knott guilty of violating registration and antifraud provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934. They were permanently enjoined from future violations, barred from serving as officers or directors, and ordered to pay substantial disgorgement and civil penalties.
