The U.S Securities and Exchange Commission (SEC) is indicating a Philadelphia day trader for alleged fraud. Since they claim that used Bitcoin to hide their profits.
The SEC filed suit against Joseph Willner, on Oct 30. However, accusing him of illegally taking over more than 100 brokerage accounts. Also using funds of losses to affectedly expand stock prices that he would then trade against profitably.
In order to hide the profits of those activities, the SEC said, Willner uses an unnamed bitcoin exchange to convert the funds from US dollars to bitcoin. Further, it is moving to another individual, unnamed in the lawsuit.
The agency said in a release:
“To mask his payments to the other individual as part of a profit-sharing arrangement, Willner allegedly transferred proceeds of profitable trades to a digital currency company that converts U.S. dollars to Bitcoin and then transmitted the bitcoins as payment”.
Furthermore, the case examining via the SEC’s Cyber Unit. It was unveiled in September and is intended in part at crimes including cryptocurrencies.
Co-Director of the SEC’s Division of Enforcement, Stephanie Avakian says,
“Account takeovers are an increasingly significant threat to retail investors, and it is exactly the type of fraud our new Cyber Unit is focusing on”.