ICO SCAM: Convicted Felon Conceals Identity, Defrauds $30 Million from Investors


He allegedly admitted to some investors that he did not disclose his true identity because doing so would destroy his company.

Defendants misled investors about their blockchain technology

Additionally, Manor and Pardo allegedly marketed and sold digital asset securities called BCT Tokens between August 2017 and September 2018. The defendants claimed that are developing technologies for hedge funds and other cryptocurrency investors. They also claimed that 20 hedge funds are testing their technology to record transactions on a blockchain.

In fact, they only sent a prototype to a dozen hedge funds. None of the hedge funds used or paid for the defendant’s barely functional technology. The hedge funds accepted the prototype because the defendants promised to help them secure up to $200 million of investment, which was not disclosed to their token investors.

Manor, Pardo and their businesses scammed more than $30 million from hundreds of cryptocurrency investors who participated in their fake ICO. The defendants violated the antifraud and securities registration provisions of the federal securities laws, according to the SEC.