Securities and Exchange Commission has made a claim against the undercover founder of Bitcoin platform and a chain of co-working spaces. This charge says Renwick Haddow has created two trendy companies and misled investors. The founder, a U.K. citizen living in New York, has made a broker-dealer without registering the firm under the federal securities laws.
The materials which were presented to investors by both companies pushed the backgrounds of senior executives who do not appear to exist. More than 80 percent of the in funds had risen by the broker-dealer. In addition to this, false facts about the company operations have been represented.
The SEC’s complaint, filed in federal district court in Manhattan, claims that Bitcoin Store has never had any operations nor generated the gross sales. Due to this, Haddow had been able to generate several million dollars in total sales. The group is also associated with the selling of fake workspaces. It was “an easy-to-use and secure way of holding and trading Bitcoin” as per the charge. However, Preethi Krishnamurthy, Neil Hendelman, Maureen P. King, and Sandeep Satwalekar are investigating officers of the Lara Shalov Mehraban supervised case.