The SEC has issued lifetime bans to two cryptocurrency market makers involved in market manipulation of tokens, reflecting its ongoing commitment to enforce regulations against fraud in the cryptocurrency sector. The agency may leverage these bans in prosecuting other defendants linked to the securities violations, highlighting a continued push for accountability within the industry.
The U.S. Securities and Exchange Commission (SEC) has enforced lifetime bans on two cryptocurrency market makers, Maxwell Hernandez (“MaxEquation”) and Russell Armand (“Saitamaguru1”), due to alleged market manipulation related to token offerings, specifically “Saitama Inu” and “SaitaRealty,” which were marketed as securities. This action reflects the SEC’s commitment to addressing fraudulent activities in the cryptocurrency sector, particularly those that may violate securities laws.
Alongside the bans, the SEC’s prior judgments indicate a strategic approach to utilize these settlements in prosecuting other individuals involved, including Manpreet Singh Kohli, the former CEO of a substantial crypto firm. The overarching message from the SEC is its determination to pursue accountability within the cryptocurrency market, underscoring potential implications for all parties involved in securities trading.
The recent SEC actions highlight the agency’s efforts to enforce regulations in a rapidly evolving market that often intersects with positions historically defined within traditional finance. This development reinforces the need for cryptocurrency participants to comply with existing legal frameworks, specifically when marketing offerings that meet the definition of securities.
