Smart Contract Scam By BCP Busted by SEC

SafeMoon Ex-CMO, YouTuber, Ben Phillips Charged for $12M Scam!

One common and the most predominant digital crime which tagged along with the development of blockchain are the ‘Smart Contact’ scams. Almost all the crypto investors, about more than 95% have experienced losses with smart contracts. However, many portray good profits , yet there always is a side which suffers. The ones who have significant experience with such smart contracts usually escape at the end satisfied with making profits. Whereas, the novice members’ losses are huge.  

With one such smart contract scam is the Blockchain Credit Platform’s ‘DeFi Money Market’ (DMM). However it was busted by the SEC recently.

The Busting of DMM

The Blockchain Credit Platform (BCP) is a Decentralized Finance (DeFi) based firm completely established in raising smart contracts and DeFi lenderings. So far it’s estimated that the company has made about $30 million through various fraudulent smart contract sales.

However, the U.S Securities Exchange Commission (SEC) busted this smart contract scam and has held the two officials responsible for it. In spite of this, the SEC imposed a cease order on which $12 million are to be seized away as criminal charges from the BCP. 

Moreover, all these unaccounted sales took place upon the smart contract DMM. This DMM is now no longer active and is dysfunctional now. During its sales period from February 2020 to February 2021, which lasted only for a year,the BCP made illegal profits directly from the user’s principal investment values.    

Accordingly, during this period the DMM smart contract put forth the sales of ‘mToken’ and the ‘DGM token’. Also, the two officials held responsible for this scam promoting sales of mToken and DGM tokens are Gregory Keough and Derek Acree. 

On the other hand, the DMM put forth various attractions to lure the investors like, extreme high interest rates of 6.25%, more profit sharings, and ‘buy and sell’ earnings from the secondary market resales. 

The SEC’s Comments

The SEC claims that the BCP has been selling these mTokens and DGM tokens without any proper approvals. Furthermore, the authorities put forth that BCP has given out false car loans and more for calculating and validating the firm’s assets.   

Despite successive sales of the mTokens, the actual funding for the platform was different, from other sources.

The SEC’s head, Daniel Michael states many of these firms lack complete honesty and transparency. In addition, they tend to mislead the public, giving our false business proposals without any valid proof.

However, both the two officials were issued hefty fines, each of about $125,000.

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A Project Engineer by profession, a writer by passion. Especially into the critics and skeptics on cryptocurrency. His fascination towards the crypto world and his personal experience on it has made him a writer with a taste.