SEC Sues Kent Swigs Cryptocurrency Partner

With alternative currency, Stephen Braverman is accused of running a pump-and-dump scheme.
The cryptocurrency business of Kent Swig is having more issues as a result of a lawsuit that is being brought against the company’s chief executive Stephen Braverman.

SEC Sues Kent Swigs Cryptocurrency Partner
Image Source: Google

 

SEC Sues Kent Swigs Cryptocurrency Partner

According to Insider, Braverman is being sued by the Securities and Exchange Commission for allegedly running a pump-and-dump operation for a cryptocurrency before joining up with Swig. In the case, which was submitted on September 30 in the Southern District of Florida, Swig is not charged with any misconduct.
According to the SEC civil lawsuit, Braverman co-created Dig, a coin backed by gold. The SEC asserts that it was “extremely implausible” that the gold backing that value ever existed when he and three other individuals sold $36.8 million worth of coins to retail purchasers.

The SEC is seeking an order requiring Braverman and the co-conspirators to pay back the victims of the alleged fraud, plus interest and additional penalties. Additionally, they might be prohibited from serving as corporate officials or directors, which would drive Braverman out of his position as president and CEO of Dignity Gold, the company that produces Swig’s Digital coins.

According to Swig, who spoke to Insider, Braverman was “defending himself vehemently against these bogus charges” and requesting the matter be dropped.

According to the spokesman, Insider Swig was not involved in the development of the Dig coin, and the two are “unrelated.” Nevertheless, the investor earlier told the publication that his company would give Braverman’s coin holders free tokens. The lawsuit is Swig’s Dignity Gold’s most recent source of trouble.

This summer, Swig and his company, Helmsley Spear, were sued by investment firm Lincoln International for unpaid rent for a subtenant apartment at 444 Madison Avenue. Due to his personal guarantee of the 15,000 square foot office rent, which includes Dignity Gold as one of the tenants, Swig is being sued.

SEC Sues Kent Swigs Cryptocurrency Partner
Image Source: Google

Swig announced the gold-tied nature of his Digau coin when he first announced his cryptocurrency business in April 2021. (just like the Dig coin Braverman is being sued about). With the use of Apache Mill Tailings, Swig’s company claimed that it would be able to extract gold from mines in Arizona, California, and Nevada. However, concerns about the project and problems related to the mining company quickly surfaced. In April, Dignity Gold said that it has acquired mining rights for 80 acres with an estimated $214 billion in undiscovered gold, silver, platinum, and “rare earth elements.”

Dignity Gold has not yet begun mining, despite the project being almost two years old. However, a Swig spokeswoman assured Insider that detailed geological surveys of the secret mining locations would be filed with the SEC in the next two to three months.

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