The United States Securities and Exchange Commission (SEC) has reportedly pressed charges against a Californian man, who is believed to be running a multi-million dollar cryptocurrency Ponzi scheme.

According to a news report, the California-based suspect – Daniel Pacheco – was allegedly accused of fraudulently selling unregistered securities, via 2 shell companies located in California – IPro Solutions LLC and IPro Network LLC – for 1,3 year. (Jan 2017 – Mar 2018).

The scheme included a “coin” that would be awarded to investors who have put their money up for investing, which can then be turned into a specific type of digital coin called PRO Currency. By doing so, Pacheco has caused a $26 million worth of financial damage to his victims.

Furthermore, the investors who have already invested in the scheme are promised an increasing number of convertible coins awarded, along with cash commission, if they were able to convince a fellow investor to join the network.

“We allege that Pacheco hid an old fraud under the guise of cutting-edge technology. He enticed investors by offering them the opportunity to speculate in cryptocurrency, when in fact he was simply operating a pyramid scheme.” SEC’s Los Angeles Regional Office Director, Michele Wein Layne, claimed.

The SEC also revealed that Pacheco has used the funds acquired from investors to purchase $2.5 million worth of luxurious items, such as real estates and a new Rolls Royce car.

As The Crypto Sight reported on May 25, Ten Brazilian suspects were brought into custody by the police, with charges against running a cryptocurrency pyramid scheme, which potentially caused 850 million reals ($210 million) worth of financial damage.