US Prosecutors Ask to Pause SEC Action Against Alleged Crypto Scammer

The U.S Attorney’s Office for the District of New Jersey is searching for to pause the Securities and Exchange Commission’s (SEC) civil motion in opposition to Blockchain Terminal founder Boaz Manor whereas it conducts its personal legal case in opposition to Manor’s alleged $30 million ICO fraud.

Assistant U.S. attorneys stated in a Wednesday memorandum their prosecutions of Manor and affiliate Edith Pardo “substantially overlap” with the SEC case. They have requested the choose within the SEC case, Stanley R. Chesler, to situation a keep to “preserve the integrity” of their legal case. The SEC “does not oppose” the movement, in line with the submitting.

Both are prosecuting Manor and Pardo’s allegedly fraudulent BCT token providing, stated by the SEC to have raised $30 million for the event of digital securities hedge fund know-how in 2019 and 2019. The SEC additionally alleged Manor by no means disclosed to traders his legal background, actual identification or his ties to a failed Canadian hedge fund.

Manor was convicted of breach of belief in 2011 in connection to the Portus hedge fund, which, earlier than shuttering in 2005, had misappropriated over $100 million in investor funds. Manor served one yr of his four-year sentence. He finally headed to the U.S. for a brand new enterprise referred to as Blockchain Terminal.

As documented in a December 2019 investigation by The Block, a “Shaun MacDonald” main the startup’s race to construct a “Bloomberg Terminal’ for the preliminary coin providing house was truly Manor in disguise. Blockchain Terminal’s staff had been unaware of Manor’s backstory, and neither had been the 275 U.S. traders within the BCT ICO.

A grand jury indicted Manor and Pardo with conspiracy to commit wire fraud, wire fraud and securities fraud previous to the SEC grievance, in line with the memorandum. Civil and legal fees had been unveiled on Jan. 17.

The lawyer’s workplace now desires to quickly freeze the SEC motion. Letting that case transfer ahead would give the defendants room to delay and degrade the legal process, they stated.

Pardo pleaded not responsible on Jan. 22, in line with the memorandum. Manor stays at massive.

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