SEC Lawsuit and Asset Freeze
The Securities and Exchange Commission (SEC) had already been on Tadrus’ trail. In July 2023, the agency sued him and Tadrus Capital, securing a freeze on his assets—a move that came just six weeks before criminal charges were filed.
Assistant U.S. Attorney John Enright told the court Thursday that at least part of the $3.2 million in frozen funds would be allocated to reimburse victims.
Preying on Trust, Selling a Lie
Prosecutors say Tadrus targeted members of the Egyptian-American Coptic Christian community in Brooklyn, using media interviews, podcasts, and YouTube videos to promote his fund’s “recession-proof” strategy. He even boasted of $5.5 billion in buying power, a claim later exposed as pure fiction.
By 2021 and 2022, Tadrus hired interns to build a functional algorithmic trading model using cTrader. But by December 2022, he admitted to them that no working AI algorithm existed.
Despite this, his fund’s website continued to display fake quarterly gains of 7.5%—all while no actual trading took place.
