The U.S. Securities and Exchange Commission (SEC) filed a complaint against Blockchain Credit Partners doing business as DeFi Money Market and its co-founders Gregory Keough and Derek Acree for allegedly engaging in a fraudulent offering of digital tokens.
De-Fi Money Market sold mTokens that paid 6.25% interest. It also DMG tokens that purportedly provide holders certain voting rights and a share of excess profits, and the ability to gain from the resale of DMG tokens in the secondary market.
SEC allegations against DeFi Money Market, Keough, and Acree
In the SEC Order on Friday, the federal securities regulator found that DeFi Money Market, Keough, and Acree fraudulently raised more than $30 million from selling unregistered mTokens and DMG tokens using smart contracts and decentralized finance (De-Fi) technology.
From February 2020 to February 2021, the respondents sold approximately $17.7 million in mTokens and over $13.9 million in DMG tokens to investors. The offerings were not registered with the SEC.