SEC Arrests Jonathan And Adam On Alleged Crypto Ponzi Scheme Worth IDR 950 Billion

JAKARTA - The United States Securities and Exchange Commission (SEC) has again revealed a major fraud case in the crypto world. This time, two brothers, Jonathan and total Adam, were charged with allegedly running a Ponzi scheme worth 61.5 million US Dollars (approximately Rp950 billion) which has ensnared more than 80 investors since January 2023.

According to court documents filed on August 26 at Georgia's Northern District Court, Atlanta, the two brothers allegedly promoted crypto trading bots that never actually existed. Through their company, Triton Financial Group and GCZ Global, Jonathan and totaling claim to have developed automated software that can detect and enter smart contracts to generate profits from flash loans short-term loans offered to arbitrage traders.

They promised 13.5% of monthly returns to excited investors to participate in this crypto asset loan pool, which is claimed to be part of a decentralized financial offering (DeFi). To provide a sense of security, investors are given an offer to lock their funds in the bot, with the promise that no one can access the funds, including Adam's own brother, to the agreed date.

However, in reality, the SEC revealed that of the 61.5 million US Dollars collected, 53.9 million US Dollars (approximately Rp834 billion) have been misused by these two brothers. They used the funds to make payments like in Ponzi schemes and buy luxury items, including recreational vehicles, luxury homes, and even pay a down payment of 30 million US Dollars (approximately Rp464 billion) for a condominium in Miami.

"As we allege, Adam's brother promised high returns on crypto investments that didn't actually exist, and then used investor funds to make Ponzi payments and buy luxury items," said Justin Jeffries, Associate Director of Enforcement at the Atlanta SEC office.

Jeffries added that the SEC will use all existing tools to stop individuals or groups from leveraging new technologies to scam investors.