Who is Involved?
Along with Constantinescu and Matlock, the others charged are: Thomas Cooperman (@ohheytommy); Gary Deel (@notoriousalerts); Mitchell Hennessey (@Hugh_Henne); Stefan Hrvatin (@LadeBackk); John Rybarcyzk (@Ultra_Calls) and Daniel Knight (@DipDeity).
All but Knight were charged with securities fraud, while Knight was charged with aiding and abetting the alleged scheme. He co-hosted a podcast in which he promoted the others as expert traders, and also traded alongside them and generated profits from the manipulation, according to the SEC.
The SEC noted that members "bragged and laughed about making profits at the expense of their followers." The indictment included an excerpt from a Discord voice recording in which Knight allegedly said they were “robbing f*cking idiots of their money."
What happens now?
The SEC’s investigation is still ongoing, handled by the agency’s market abuse unit in the Boston regional office. At the same time, criminal charges against all eight individuals have also been filed by the Department of Justice’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas.
The defendants made their initial court appearances on Tuesday, according to the US Department of Justice. Each faces a maximum penalty of 25 years in prison if convicted. Those who believe they are victims of the fraud can contact the agency toll-free at (888) 549-3945 or by email at [email protected].
This article was provided by Bloomberg News.