SEC Freezes Assets of Crypto Trading Bot Operators in Alleged Ponzi Scheme

The U.S. Securities and Exchange Commission (SEC) has frozen the assets of Jonathan and Tanner Adam, alleging they ran a $60 million Ponzi scheme under the guise of a crypto trading bot. Over 80 investors were defrauded by promises of high returns, while the funds were allegedly used for personal luxuries. The SEC seeks injunctions, disgorgement, and penalties against the brothers for their violations of securities laws.

SEC Freezes Assets in $60 Million Ponzi Scheme Allegations

The U.S. Securities and Exchange Commission (SEC) announced on Monday that it has “obtained emergency asset freezes” against Jonathan Adam of Angleton, Texas, and his brother, Tanner Adam, of Miami, Florida, along with their companies, GCZ Global LLC and Triten Financial Group LLC.

The SEC alleges that the brothers operated a $60 million Ponzi scheme, impacting over 80 investors across the United States. According to the SEC’s complaint, between January 2023 and June 2024, the Adams falsely promised investors up to 13.5 percent monthly returns through a supposed crypto asset trading “bot.”

Justin C. Jeffries, Associate Director of Enforcement in the SEC’s Atlanta Regional Office, commented on the allegations, stating:

The Adam brothers promised their investors high returns on a crypto investment that did not exist, and then used investor funds to make Ponzi-like payments and to purchase designer goods, recreational vehicles, and million-dollar homes.

The SEC claims the bot and the lending pool described to investors were non-existent, and that investor funds were instead misappropriated for personal use and to make payments to previous investors.

The complaint further reveals that Tanner Adam allegedly used investor money to finance a $30 million Miami condominium, while Jonathan Adam is accused of spending $480,000 on vehicles. The SEC further detailed:

In addition to the emergency relief granted by the court, which the defendants did not oppose, the SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against the defendants.

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